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

THE JAPAN SOCIETYREPORT OF THE TRUSTEES AND
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

The Japan Society
Contents of the Financial Statements
for the Year Ended 31 December 2017

Page
Reference and Administrative Details

1

Report of the Trustees

2Statement of Trustees Responsibilities

10

Report of the Independent Auditor

11

Statement of Financial Activities

13

Balance Sheet

14

Notes to the Financial Statements

16

Detailed Statement of Financial Activities

26

THE JAPAN SOCIETYLEGAL AND ADMINISTRATIVE INFORMATION
PatronPresident
Vice Presidents

Honorary Vice-Presidents

HRH The Duke of Gloucester, KG, GCVO
HE The Japanese Ambassador
Yasuyuki Fujitani
Isao Kano
Yasuo Kashiwagi
Atsushi Kume
Daniel Sciamma
Sir Hugh Cortazzi, GCMG
Shin Ebihara
Hiroaki Fujii
Haruko Fukuda OBE
Sadayuki Hayashi
Hiroshi Kitamura
Prof. Ian Nish, CBE
Yoshiji Nogami
Masaki Orita
Christopher Purvis CBEViscount Trenchard
Ben Thorne, CMG, MBE

Officers and Trustees(as at 24 April 2018)

Sir David Warren KCMG, Chairman
Graham Holman, Vice Chairman
Takashi Okada, Vice Chairman
Jenny White, Vice Chairman
Nigel Wellings, Hon Solicitor
Satoru Yoshida, Hon Treasurer
Tetsuro Hama
Sue Hudson
Janet Hunter
Shinichi Iida
Jason James
Yuuichiro Nakajima
Morihiko OkudairaRichard Oppenheim
Sarah Parsons
Yoji Saito
Eiji Wakiwaka

Chief Executive and Company Secretary

Heidi Potter

Charity number

1063952

Company number

3371038

Principal address

13/14 Cornwall Terrace
London NW1 4 QP

Auditors

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

1

THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017
The Trustees, who are also directors of the charity for the purposes of the companies act 2006, present their report with thefinancial statements of the charity for the year ended 31 December 2017. The Trustees have adopted the provisions ofaccounting and reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts
in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) (effective 1
January 2015.)
Structure, governance and management
The Japan Society is a company limited by guarantee and as such is governed by its Memorandum and Articles of
Association. It is a registered charity.
The members of board who served during the year were:
Sir David Warren, KCMG - Chairman
Graham Holman - Vice Chairman
Motohiko Kato - Vice Chairman(Resigned 12 July 2017)
Takashi Okada – Vice Chairman(Appointed 2 November 2017)
Jenny White - Vice Chairman
Satoru Yoshida- Hon Treasurer
Nigel Wellings - Hon Solicitor
Alison Scott - Hon Editor(Resigned 12 July 2017)(Resigned 12 July 2017)
Tom Burn
Lydia Gomersall(Resigned 12 July 2017)
Tetsuro Hama
(Elected 12 July 2017)
Sue Hudson
Janet Hunter
Shinichi Iida
Jason James(Resigned 31 January 2018)
Mami Mizutori
Yuuichiro Nakajima(Elected 12 July 2017)
Morihiko OkudairaRichard Oppenheim(Elected 12 July 2017)
Sarah Parsons
Yoji Saito
Akihiro Tsuchiya(Resigned 12 July 2017)
Eiji Wakiwaka
Appointment of Trustees
As set out in the Articles of Association, the Board of the Japan Society consists of a Chairman, up to two Vice-Chairmen,
up to four appointed officers (Solicitor, Treasurer, Editor and Librarian), two ex officio Trustees (one additional
Vice-Chairman, the deputy head of mission at the Japanese Embassy, and one ordinary Trustee, a member of the Japanese
Embassy) with up to 20 Trustees in total.
Vice Chairmen are elected annually by the board from their number. It is also the board which appoints the four officers:
solicitor, treasurer, editor and librarian. There is no maximum term to these four appointments, but any appointments should
be re-confirmed every three years. The board has the right but no obligation to appoint Vice-Chairmen, solicitor, treasurer,
editor and librarian.
All other members of the board (with the exception of the two ex officio Trustees from the Embassy) are elected for a termof three years. At the end of the first term, Trustees may stand for re-election for a second three year term. No one may serveas an ordinary Trustee for more than six consecutive years.
Mami Mizutori stood down from the board in January on taking up a new appointment overseas. At the Annual General
Meeting in 2018, Graham Holman will be standing down having served on the board for six years; Richard Oppenheim isresigning on being posted overseas. Janet Hunter, Jason James and Eiji Wakiwaka will be standing down at the end of a threeyear term, all are eligible for re-election.
The board meets at regular intervals in order to provide strategic direction and to monitor and review the activities of theSociety. During the year the board met four times, one being an extended meeting at which the board and executive
considered together issues facing the Society in the medium to long term. The day-to-day running of the Society is carriedout by the permanent staff under the leadership of Heidi Potter, who regularly reports to the Chairman and the board. She issupported by a team of paid staff and occasional interns. The activities of the Society are organised by the office, withsupport also provided by activity group sub-committees (particularly awards, business, conversation, publications and small
grants), which meet on an ad hoc basis and whose members are volunteers. Teams of Japan in Your Classroom volunteers2THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
are essential to the running of the Society’s popular school visit programme.
A nominations committee (in 2017 comprising David Warren, Marie Conte-Helm, Andrew Fraser, Tetsuro Hama, Shinichi
Iida, Mami Mizutori and Heidi Potter) reviews the skills that are required on the board from time to time and the succession
policy, making recommendations to the board on possible future appointments. The following skills / interests have been
identified as particularly relevant to the Japan Society and are represented on the current board: the arts; the Japan-related
business community; education; fundraising; the general Japanese community. The board in turn makes proposals to themembers of the Society in advance of the Annual General Meeting. The recommendations for election at the forthcoming
Annual General Meeting are detailed in the Chairman’s letter at the start of this report as well as in the papers for the Annual
General Meeting. The role of the board and the organisation's expectations of its board members are discussed with new
Trustees prior to their election. The current extended nominations committee has been advising in particular on the future
Chairmanship of the Society.
The audit committee (comprising Heidi Potter, David Warren and Satoru Yoshida) considers the accounts and theperformance of the auditors. The membership committee (chaired by Graham Holman, with Martin Barrow, Jon Fisher,
Akiho Horton, Michael Jefferson, Junko Kohama, Midoriko Nakajima, Heidi Potter, Julie Rogers, Niraja Singh and Chris
Stuart) focuses on membership issues and recruitment.
Pay Policy
The pay of staff is reviewed annually by a remuneration committee (David Warren, Stephen McEnally, Aki Tsuchiya, Jenny
White) and normally increased in accordance with average earnings. In view of the nature of the charity, the Trustees
benchmark against pay levels in other similar organisations.
All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees' expenses andrelated party transactions are disclosed in notes 11 and 19 to the accounts.
Risk Management
Members of the board review the major risks to which the Society is exposed and the systems established to mitigate this risk.
A Risk Management Register is maintained and formally reviewed annually by the board.
MissionThe Society's objects are:a)to promote learning and advance education in the subject of and with regard to Japan;b)
to promote the study of Japan and its people in all their aspects, traditional and modern, and to make the results of suchstudy more accessible to the general public;c)
to promote the study of Britain and its culture by Japanese people and to further educational exchanges between
Britain and Japan.
The vision that drives the Society’s annual activity is the enhancement of understanding of Japanese life and culture and oflinks between the UK and Japan. This informs all areas of the programme, whether direct school-focused education
initiatives, lectures and seminars for the general public and business leaders, events introducing aspects of the culture of bothcountries, opportunities for people to meet in more informal settings, the provision of research facilities through our library,or the programme of small grants made in support of Japan-related projects that are organised by others.
The board regularly reviews the Society's activity to ensure that its key objectives are being met as well as to confirm theircontinuing relevance. In the aftermath of the UK's decision to leave the EU, and with increasing global tendencies for nations
to look inward, the Society's role in creating bridges and fostering professional and personal networks retains its importance.
The Trustees are mindful of the Charity Commission guidance on public benefit and consider this when planning andevaluating our activities and in ensuring that a significant proportion is accessible to the wider community beyond theSociety’s membership. Many events are open to non-members, while the schools education programme and the small grants
scheme extend throughout the UK, beyond the Society’s base in London.
The Society encourages any who have an interest in Japan and the broad UK-Japan relationship to become members andparticipate in activities. Reduced membership fees for students and those under 25 years of age are set in order to makemembership accessible to the next generation, who will take the relationship forward in the coming years. In recent years wehave noticed a tendency for people to sign up to receive newsletters, or to follow the Society on social media, without
becoming members. Our policy on charging and participation by non-members is outlined below.
Achievements and performance
The main areas of activity of the Society are: awards, events, the library, publications, schools education and small grants.
The Society is grateful to the companies and individuals who share its belief in the importance of promoting a good mutual
understanding between the UK and Japan, and who provide essential financial support. This enables the Society to include asignificant number of low cost or free events to provide opportunities to people from a variety of backgrounds regardless ofability to pay. This is an important factor in ensuring that the Society achieves its charitable objective to promote the study of3

THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
and advance education in regard to Japan. Where charges are levied, these are set at a level to cover direct costs to theSociety, excluding overheads. A significant number of events, including the monthly lecture programme, are also open to
non-members. The majority of the Society’s schools education services are provided free of charge; membership of theSociety is not a prerequisite to using these services. In addition up to £30,000 has been set aside each year for disbursement
through the small grants programme in support of events organised by others which are in furtherance of the Society's
objectives and which will provide opportunities to new audiences across the UK.
EventsThe Society in 2017 arranged over 80 different events spanning a wide range of subject and format, both independently andin partnership with other organisations. The programme is designed to be accessible and strikes a balance between those
activities tailored to particular interests and those designed to provide new opportunities for participation by the generalpublic to learn about Japan.
The 2017 general events programme included:
16 business-related events
13 conversation group events
6 events aimed at younger members or families
15 lectures
10 art & culture events
There was no large-scale annual dinner in 2017, although members had opportunities to socialize through a number ofsmaller scale supper club events, as well as at the annual Christmas Party, kindly hosted by the Embassy of Japan.
A busy programme of business events in 2017 again included a number of events with a focus on the implications of the UK
leaving the European Union, while also covering other topical issues. The Chairman held a series of small lunches andbreakfasts in which key figures based in the UK, Japan and elsewhere, were invited to meet senior members of the Society.
These provided opportunities for decision makers to share ideas and information, and ensured that those involved in businessand government were well informed on topical issues relating to the Japan-UK relationship in a global context. Three ofthese focused on Brexit (Alok Sharma MP, FCO Minister for Asia & the Pacific; Charles Grant, Director, Centre forEuropean Reform; Philip Stephens, Financial Times), while in the fourth, Glen S. Fukushima, Senior Fellow at the Centre for
American Progress, gave an assessment of the state of Japan-US relations and their implications for Japan and its continental
neighbours.
Other larger-scale business lectures and seminars were also generously hosted by corporate members of the Society, ororganised in partnership with others. One such was a seminar by Gerard Lyons, Chief Economic Strategist at NetwealthInvestments, who presented economic arguments for the UK leaving the EU. A briefing by Yoshiyuki Ishizaki, Special
Adviser to the Fukushima Revitalization Headquarters, TEPCO, updated attendees on the progress of the clean-up at the
Fukushima nuclear reactor since the 2011 disaster. On stepping down as British Ambassador to Japan, Tim Hitchens lookedback at his four years in post and briefed members on the relationship between the British and Japanese governments, andlikely developments over the coming year.
The Society continued to arrange joint lunches in conjunction with the Japanese Chamber of Commerce and Industry in theUK, which provided opportunities for Japanese and non-Japanese to meet and to hear from guest speakers, who were during
the year: Sir David King, the government’s Special Representative for Climate Change and Nick Clegg, Liberal Democrat
Brexit spokesperson and former Deputy Prime Minister. A special lunch was organized with members of the UK-Japan 21stCentury Group on the occasion of its 34th Annual Meeting, in order to consider topics to be discussed by the Group at its
conference.
A series of seminars on FinTech aimed to shed light on an aspect of the modern world which affects everyone but isunderstood by few. Breaking the topic down into sessions such as financial inclusion, AI, security and virtual currencies, thisseries enabled attendees to gain a deeper knowledge of the subject and to hear from experts in the field. It was particularly
popular with younger corporate members and student members, who enjoyed the opportunity to share information andcontinue their discussions after the formal presentations.
The Japan Society values its partnerships with other organisations with similar aims and interests in developing a programme
which is of interest and benefit to the membership. In the current economic climate, the sharing of up-to-date information
and best practice is particularly important. Once again a seminar was held in association with JETRO, in which Ken Koyama,
Chief Economist of the Institute of Energy Economics, gave a Japanese perspective on World Energy. The Society also
partnered with the Bank of Japan on a briefing by Deputy Governor Hiroshi Nakaso.
The conversation group continues to play an important role in the Society, providing a valuable opportunity for members tomaintain and develop their language skills. It allows Japanese and non-Japanese, members and non-members, to talk in a4

THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
friendly and informal setting. In addition to the regular monthly meetings, the conversation group organises occasional
special events, such as the annual hanami picnic, as well as participating jointly in other Society events.
The Society continued to offer a broad general programme of formal and informal events to appeal to people with a wide
range of interests and ages. The monthly book club met at Daiwa Foundation Japan House, where regular and occasional
participants engaged in lively discussions on a wide range of books including literary classics, anthologies and contemporary
fiction.
Other events included gallery talks and museum visits, cultural workshops, music and theatre, food and drink tastings, golf
tournaments, and social events. A series of film screenings organised in partnership with the Royal Anthropological Institutewas particularly popular, while members also enjoyed the opportunity to visit the British Museum’s major exhibition,
Hokusai: beyond the Great Wave in the company of its curator, Tim Clark. An extended project with Hashiguchi Architects
and Waso Japan brought a focus on design and tradition, with engagement by Chelsea College, UAL, Royal Botanic Gardens,
Kew, as well as schools, in exploring the tea room in Japanese culture through lectures, workshops and installations. Lecture
demonstrations on pottery (with Kazuya Ishida) and chochin lanterns (with Kenichi Fushitani) were also well attended andmuch enjoyed.
The Society again partnered with Kew Gardens and the Embassy of Japan in organising a tanabata festival celebration, heldin Kew's bamboo garden over two days in August. This was followed by the ninth annual Japan Matsuri, held in Trafalgar
Square on 24 September. The Japan Society has a formal role as Corporate Director of the Japan Matsuri company, with
Heidi Potter its nominated representative on the board. In 2017, the Society again oversaw administration relating to stalls at
the event, which was as usual managed by a professional production company which reduced the administrative burden andrisk to the four partner organisations: the Japanese Chamber of Commerce and Industry in the UK, the Japan Association, theNippon Club and the Japan Society. In 2017, the event received support from Japan House London to bring performers to
London from Japan.
The lectures programme as usual covered a wide range of subject matter. The monthly academic lecture series formed thecore of this aspect of our public programming. These lectures are held at Swedenborg Hall, a convenient, central London
venue, easily accessible to students; this is an audience we are particularly keen to encourage and build. Subjects in 2017
included: the trade in silk, porcelain and lacquer; Ainu representation in modern Japan; writing and reading Japanese film
scripts; women in the world of Haruki Murakami; Nishiki weaving; Susumu Katsumata’s anti-nuclear manga; JapaneseCastles; and Japan’s foreign and security policy. The eighth annual lecture in memory of Dr Carmen Blacker took place inLondon and Norwich, organised jointly with the Sainsbury Institute for the Study of Japanese Arts and Cultures, withMamoru Saso speaking on the archaeology of ritual sites and the origins of Japanese shrines and festivals. Other lectures
included the History of Horoscope Astrology in Japan with Ryuji Kagami, and an overview and history of the Hankyu
British Fair.
Japan Society Small Grants
An annual sum of up to £30,000 is set aside for grants in support of small-scale projects and events related to Japan. These
grants provide opportunities for people throughout the UK to participate in education and exchange relating to Japan and thus
contribute to raising awareness and understanding of the country and its culture in places where the Japan Society has no
regular contact. Priority is given to applications for grassroots projects and for activities involving schools and othereducational establishments.
In 2017, 31 grants were made averaging £677 with funding totalling £21,000 being awarded in support of grassroots projects
in the UK. In line with the objectives of the grants scheme, most of the activities supported had an educational element,
fostered exchange between the UK and Japan, or provided opportunities to bring Japanese culture to a wide group of people.
Sixteen of the grants awarded were for projects taking place in schools or for activity involving young people. Several
schools organised cross-curricular events such as a whole school Tanabata festival or Japanese culture week for a particular
year group. King Edward VI Community College in Totnes organised an ambitious exhibition much enjoyed by the local
community and accompanied by a range of art and craft, music, dance and food workshops for students. At other schools, it
was the library which provided the Japan focus with literature workshops or manga clubs for language learners. The British
Cartographic Society continued its Restless Earth workshop series using the Great East Japan Earthquake and tsunami as acase study to learn about disaster response activities: with a small grant enabling additional schools to be visited.
Once again the Society also supported projects involving young people outside the school system. A ten-day residential
workshop in Winchester provided opportunities for children and young people with learning difficulties to participate in anarts programme focused on Japan. Another project involved high-achieving young people and their families to learn new
skills and explore Japanese culture in a supportive environment. The Society supported the Kotatsu Japanese Animation

5

THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
Festival, which expanded its activity in 2017 and involves local schools, universities and arts institutions.
Other projects supported in 2017 include: The Museum of East Asian Art in Bath which used a small grant to extend thereach of the ‘Dressed to Impress: Japanese Men’s Fashion’ exhibition with a programme of accompanying talks andworkshops; the Japanese Garden Society’s two day conference, where speakers discussed the spread of Japanese gardens
across the world and their adaptation to local conditions; a special screening of the 1926 avant-garde film ‘A Page ofMadness’ with benshi narration; and a programme of lectures to accompany ‘Japanese Junction’ an exhibition of work by
emerging Japanese architects and designers.
Small grants also supported community-based Japan festivals in Basildon, Bath, Cambridge, Derry-Londonderry and Kent.
Library
During 2017 work continued on cataloguing and documenting ephemera and loose correspondence held in the library. A
small number of researchers visited, primarily to use the historical archive and copies of the Transactions and Proceedings of
the Society.
Publications
At the end of 2014, the board re-established a publications committee (comprising Sir Hugh Cortazzi, Sean Curtin, Janet
Hunter, Stephen McEnally, Heidi Potter, Alison Scott (Chair), Jenny White) with a brief to review the Society's work inpublishing and identify material for future consideration. In 2017, work was carried out on Heaven’s Wind, an anthology ofshort stories by five contemporary women writers, with translation in parallel text format and an extended essay by translator,
Angus Turvil;. the book was released in January 2018.
Work began on two further publications: British Foreign Secretaries and Japan 1850-1990 (for 2018) and British Royal andJapanese Imperial Relations (for 2019).
Schools Education
The schools education programme has been developed out of a belief in the value to young people in the UK of growing up
with an awareness and understanding of Japan and its culture. In addition to historical and business reasons for learning
about a key international partner, there are more general benefits of broadening horizons and raising aspirations. Through its
activities for schools, the Society supports teachers who may have limited experience of Japan themselves in providing theseopportunities for their students.
Throughout the year, the Society's education team provides advice and resources to schools engaged in teaching and learning
activities relating to Japan. In 2017, the Japan Activity Chest was renewed, with new items and updated accompanying
resources. The chest now arrives in schools in the form of a suitcase, with luggage tags as though it had just arrived fromJapan and filled with toys, clothing, books and artefacts from daily life. A special project in 2017 involved students fromseveral schools working on designs for tea rooms inspired by the work of architect Shinichiro Hashiguchi (see general
events). These ranged from a Year 3 class to GCSE design and technology students.
Japan in Your Classroom visits
During the year over 60 visits were made by volunteers in Greater London, Brighton, Derby, Manchester and South Wales.
For most students a Japan in Your Classroom visit is their first opportunity to meet a Japanese person and to hear about Japanfirst-hand; the visits have a lasting impact. A series of training sessions was held to support the volunteers, covering bothgeneral matters such as classroom management and techniques for engaging pupils actively, and subject-specific content.
School links
Support for school links has continued to be an important element of the Society's work. During 2017, new partnerships were
established and existing links strengthened through exchange trips. The partnership developed by Takamatsu Daiichi SeniorHigh School with County Upper School, Bury St Edmunds, and Newstead Wood School, London, continued with anotherscience-based exchange in March. Annual exchange visits took place from Komaki Elementary School, Nagano, to schools
in Nottingham and between staff at Reepham Primary School, Norfolk and Sakado Azuma Kindergarten in Saitama. In
December, Wavell School and Farnborough College of Technology hosted a taiko group from Mizuma High School,
Fukuoka. The taiko group performed at both schools, as well as running a number of workshops.
Work continued on a redesign of the Japan UK LIVE! website, to make it more intuitive and simple to use. The new site will
be rolled out in 2018.
Sixth form study day
These were held in Manchester (March 2017, with Manchester University) and London (November 2017, in partnership with6

THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
Ritsumeikan University and SOAS). The London event was fully subscribed, with some 120 students and staff participating
in a day of lectures and workshops on Japanese themes. Representatives from universities throughout the UK attended toprovide information on opportunities for further study. The Manchester day, postponed from 2016, was opened up to GCSE
students, and was found useful by the 30 students who attended.
Communication and marketing
The website and regular email notices continued to be important and efficient tools for communicating information about theSociety and its activities. At the same time, monthly event calendars distributed by post on request provided a back-up for
those without regular access to the internet. Facebook and Twitter are for many the first contact with the Society, with steady
growth in following on these media. Efforts were made in 2017 to include regular email notices also in Japanese, in order tomake content more easily accessible to native Japanese speakers.
Financial Review
In 2017 the Society showed a deficit of (£9,220), which reflected the loss of a few small corporate donors, as well as anincrease in overhead costs due to inflation.
During the year individual and corporate members continued to provide invaluable support through the higher-level giving
scheme both for the general mission and for the schools education programme.
The following companies and individuals have given support at a level above that of regular membership (minimum amounts
for each level are given in brackets):7THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
Companies
President's Circle (£25,000)
JTI
Mitsubishi Corporation International(Europe) Plc
Mitsui & Co Europe Plc
Nomura International Plc
Platinum Circle (£17,500)
Itochu Europe Plc
Softbank Group
Sumitomo Corporation Europe Ltd
Chairman’s Circle (£10,000)*¶Chugai Pharma Europe Ltd
Mitsubishi UFJ Financial Group
Corporate Patron (£7,500)*¶Astellas Pharma Inc*¶Canon Europe Ltd*¶Central Japan Railway Company*¶Eisai Europe Ltd
Ernst & Young LLP
Marubeni Europe plc*¶Mitsubishi Electric Europe BV
Mizuho Financial Group¶NSK Europe Ltd*NYK Group Europe Ltd*¶PricewaterhouseCoopers LLP
SMBC Europe Ltd

Corporate Donor (£2,000)
Aberdeen Standard Investments
Allen & Overy LLP
All Nippon Airways Co Ltd
BDO LLPDAKS Simpson Group plc*Greenback Alan LLP
Holman Fenwick Willan LLP
Japan Airlines Co Ltd
Japan Post Bank Co Ltd*"K" Line (Europe) Ltd¶Linklaters LLP
Mishcon de Reya LLP
Mitsubishi Heavy Industries Europe
Ltd
MSIG Holding (Europe) Ltd*NEC (Europe) Ltd
Ricoh (Europe) plc
Sompo Japan Nipponkoa Insurance Co
of Europe Ltd
Tokio Marine Kiln Insurance Ltd
Toshiba of Europe Ltd
All or part of the donation fromcompanies marked with anasterisk (*) has been designated insupport of the schools educationand small grants programmes.
Those with a pilcrow sign (¶) havegiven their support through a five
year agreement.

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

Individuals
Principal Benefactor (£1,000 +)Martin & Noriko Barrow
Bill Emmott
Principal Donor (£250)
Penelope Elias
Michael Faber
Ruth Martin
James Noble
Yoshio Noguchi
Heidi Potter
Adrian Thorpe
Donor (£100)
Mark Allsup
Clive & Vivien Bradley
Stephen Codrington
Joe Earle
Robin Fox
Lydia Gomersall
Keiko ItohPeter Job
Kathleen KimuraDavid Mytton
Pernille Rudlin
M.R. Smith
Andrew Smithers
Simon Sole
Yuko Takano
Individual Supporter (£58)
D G R Bentliff
Deborah Install
Suzanne Hudson
Marilyn Malin
Janusz Mondry
Rosemary Morgan
Suzanne Perrin
Jairaj Thakkar

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THE JAPAN SOCIETY
TRUSTEES' REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTD)
Reserves
In the current uncertain political and economic climate, the board has reviewed its reserves policy and has decided that it should maintain reserves of atleast 75 per cent of total annual expenditure. Current reserves of over 80 per cent of annual expenditure have been built up as a result of prudence at a timeof general economic downturn when prospects for fundraising were uncertain. This guards against risks to the Society’s core activity should it fail to meetprojected income targets and provides some financial security to a charity which currently relies for almost all its funding on annual donations. Funds havebeen designated in respect of known maintenance costs and for the employment of a member of staff in Japan as outlined in note 17. As at 31 December
2017, unrestricted reserves less tangible fixed assets were £405,406. The cash reserves are held on deposit.
Plans for the future
In 2018, the Japan Society will continue to develop its programme of events, particularly those of interest to the youth audience, while also maintaining
and developing its business and academic programmes. Our schools education programme remains a priority, taking advantage of interest arising from the2019 Rugby World Cup and Tokyo 2020 Olympic and Paralympic Games. The need to educate the next generation to look beyond national boundaries
and equip them for work in a global economy, means that support for school partnerships and work to develop resources for teachers remain extremely
relevant. We have ambitious plans for the development of accessible teaching resources and have been encouraged by the emergence of new school-based
initiatives in different parts of the country. The forthcoming Japan Season of Culture in the UK and related activity, is also expected to provide
opportunities to develop programmes in support of the Society’s remit.
Two publications are scheduled for issue in 2018 and 2019, with a third publication, a children’s book, also in development. During 2018 the Society’s
website is being updated, to reflect more accurately the vibrant community it represents.
The Trustees have been kept informed of developments regarding the establishment of “Japan House” in London under the auspices of the Japanese
Government, which is due to open in summer 2018. The Society looks forward to working closely with this new organisation as appropriate, in order toprovide increased opportunities for the public to engage with Japan. The Japan Society Chairman sits on the steering committee of Japan House.
Although in a strong financial position at the start of 2018, the Society continues to be faced with a need to raise significant funds each year in order tomaintain and develop the level of services for members and the wider community. This task will not be easy against a background of continued economic
uncertainty, but it is anticipated that the Society's record in doing important educational work will continue to be persuasive and that support fromhigher-level donors will be sustained.

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

9

THE JAPAN SOCIETY
STATEMENT OF TRUSTEES RESPONSIBILITIES
for the Year Ended 31 December 2017

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

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

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

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

10

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

OpinionI have audited the financial statements of The Japan Society (the 'charitable company') for the year ended
31 December 2017 on pages thirteen to twenty five. The financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted
Accounting Practice).
This report is made solely to the charitable company's trustees, as a body, in accordance with Section 145 of theCharities Act 2011 and regulations made under Section 154 of that Act. My audit work has been undertaken so that I
might state to the charitable company's trustees those matters I am required to state to them in an auditor's report and forno other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other thanthe charitable company and the charitable company's trustees as a body, for my audit work, for this report, or for theopinions I have formed.
In my opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 December 2017 and of its
incoming resources and application of resources, including its income and expenditure, for the year then ended;have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; andhave been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial
statements section of my report. I am independent of the charitable company in accordance with the ethicalrequirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard,
and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit
evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Conclusions relating to going concern
I have nothing to report in respect of the following matters in relation to which the ISAs (UK) require me to report toyou where:
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; orthe trustees have not disclosed in the financial statements any identified material uncertainties that may castsignificant doubt about the charitable company's ability to continue to adopt the going concern basis ofaccounting for a period of at least twelve months from the date when the financial statements are authorised for
issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in theannual report, other than the financial statements and my Report of the Independent Auditor thereon.
My opinion on the financial statements does not cover the other information and I do not express any form of assurance
conclusion thereon.
In connection with my audit of the financial statements, my responsibility is to read the other information and, in doingso, consider whether the other information is materially inconsistent with the financial statements or my knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work I have performed, I conclude
that there is a material misstatement of this other information, I am required to report that fact. I have nothing to reportin this regard.
Matters on which I am required to report by exception
I have nothing to report in respect of the following matters where the Charities Act 2011 requires me to report to you if,
in my opinion:
the information given in the Report of the Trustees is inconsistent in any material respect with the financial
statements; orthe charitable company has not kept adequate accounting records; orthe financial statements are not in agreement with the accounting records and returns; orI have not received all the information and explanations I require for my audit.

11

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

Responsibilities of trustees
As explained more fully in the Statement of Trustees’ Responsibilities set out on page ten, the trustees (who are also thedirectors of the charitable company for the purposes of company law) are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or haveno realistic alternative but to do so.
My responsibilities for the audit of the financial statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditor that includes myopinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these financial statements.
A further description of my responsibilities for the audit of the financial statements is located on the Financial
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of my Report of
the Independent Auditor.

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

12

THE JAPAN SOCIETY
STATEMENT OF FINANCIAL ACTIVITIES(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)
for the Year Ended 31 December 2017

Unrestricted
fund
Notes
£

DesignatedFund£

Restrictedfund£

31.12.17
Total funds

31.12.16
Total funds££

65,380405,607443,122-409-

24,57486
25,05333,494451
22,543

389,531-65,789455,320499,610

4,015

-

-

4,015

7,614

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

120,476
183,802136,265
19,982

72,446201,643
202,053
25,438

Total

398,539-

66,001

464,540

509,194NET
INCOME/(EXPENDITURE)(9,008)-(212)(9,220)(9,584)(5,000)

5,000

-

-

-

(14,008)

5,000

(212)

(9,220)(9,584)

Total funds brought forward

287,910

614,964212

903,086

912,670

TOTAL FUNDS CARRIEDFORWARD

273,902619,964-

893,866

903,086

INCOME FROM
Donations and legacies2

340,227-

Fundraising activities
Investment income
Other income

34
5

24,165
86
25,053

Total

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

Transfers between funds

Net movement in funds

6
7

17

RECONCILIATION OF
FUNDS

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

The notes form part of these financial statements
13THE JAPAN SOCIETY
BALANCE SHEETAt 31 December 2017

Unrestricted
fund
Notes
£

DesignatedFund£

Restrictedfund£

31.12.17
Total funds

31.12.16
Total funds

£

£

-

488,460

495,175

138,229-

129,775
309,393

125,985
327,031

300,939

138,229-

439,168

453,016

CREDITORS
Amounts falling due within one
year
16(33,762)--(33,762)(45,105)

NET CURRENT ASSETS

267,177

138,229-

405,406

407,911TOTAL ASSETS LESSCURRENT LIABILITIES

273,902619,964-

893,866

903,086

NET ASSETS

273,902619,964-

893,866

903,086

273,902619,964

287,910
614,964

Restricted funds

893,866-

902,874212

TOTAL FUNDS

893,866

903,086

FIXED ASSETS
Tangible assets

14

6,725

481,735

CURRENT ASSETS
Debtors
Cash at bank15

129,775
171,164

FUNDS
Unrestricted funds:
General fund
Designated Fund17

The notes form part of these financial statements
14

continued...

THE JAPAN SOCIETY
BALANCE SHEET - CONTINUED
At 31 December 2017

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year
ended 31 December 2017.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006, requiring an audit ofthese financial statements.
The trustees acknowledge their responsibilities for(a)ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of theCompanies Act 2006 and(b)
preparing financial statements which give a true and fair view of the state of affairs of the charitable company asat the end of each financial year and of its surplus or deficit for each financial year in accordance with therequirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act
2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies
Act 2006 relating to small charitable companies.
The financial statements were approved by the Board of Trustees on ............................................. and were signed on its
behalf by:.............................................
Sir David Warren – Chairman of the board of Trustees.............................................
S Yoshida -Trustee

The notes form part of these financial statements
15

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2017

1.

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

16THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2017

1.

ACCOUNTING POLICIES - continued
Allocation and apportionment of costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable
activities. Support costs include back office and governance costs which support membership and publications,
events, school education and small grant activities. These costs have been allocated and apportioned to thevarious charitable activates. A percentage basis has been used to apportion the support costs to the charitable
activities.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual valueof each asset over its estimated useful life.
Fixtures, fittings & equipment - 20% Straight LineIT Equipment - 33% Straight LineThe library is not depreciated as a policy of revaluation has been adopted due to the fact the library contains rarebooks which tend to increase in value over time.
All assets costing more than £500 are capitalised.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Restricted funds can only be used for particular restricted purposes within the objects of the charity.
Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at thebalance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange rulingat the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis
over the period of the lease.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to thecharitable company's pension scheme are charged to the Statement of Financial Activities in the period to which
they relate.

17

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2017

1.

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

2.

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

3.

Restricted
funds£
65,380-31.12.17
Total
funds
£
78,535
293,630
5,000
23,4574,985

31.12.16
Total
funds
£
82,129299,91425,00023,681
12,398340,227

65,380405,607443,122

Unrestricted
funds£
24,165-

Restricted
funds
£
409

31.12.17
Total
funds
£
24,165409

31.12.16
Total
funds
£
32,4491,045

24,165409

24,57433,494

Unrestricted
funds
£
86

Restricted
funds
£
-

31.12.17
Total
funds
£
86

31.12.16
Total
funds
£
451

FUNDRAISING ACTIVITIESEvents income
Education income and direct projects

4.

Unrestricted
funds£
78,535228,250
5,000
23,457
4,985

INVESTMENT INCOME

Deposit account interest

18

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2017

5.

OTHER INCOME

Publication and sale of books
Rental income
Secretariat income

6.

Unrestricted
funds
£
5,230
12,323
7,500

Restricted
funds
£
-

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

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

25,053-25,05322,543

Unrestricted
funds
£
15
4,000

Restricted
funds
£
-

31.12.17
Total
funds
£
15
4,000

31.12.16
Total
funds
£
2,379
5,235

4,015

-

4,015

7,614

RAISING FUNDS
Raising donations and legacies

Fund raising activities
Marketing, website & database

7.

CHARITABLE ACTIVITIES COSTS

Direct costs£
45,064
68,23379,047-

Membership and publications
EventsSchools education
Small grants

192,3448.

Grant
funding ofactivities Support costs(See note 8)(See note 9)££75,412
115,569
57,21819,982
19,982

Totals£120,476
183,802136,265
19,982

248,199

460,525

31.12.17£
19,98231.12.16£
25,438GRANTS PAYABLE

Small grants

19

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 20178.

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

Action factory
Blueprint 22
Blueprint: Film Foundation
British Cartographic Society
DCC KEVICC
Devon Guild of Craftsmen
Japanese Garden Society
Japan Society North West
Kotatsu Animation Festival
Modern Culture/M J Colthorpe
Mu:arts
Occidents (Silver Salt Films)
Oldham Council
Ormiston Anademies Trust - Tenbury
Ryoko Akama
Sally Crabtree t/a Poetree
Synergy Multi-Academy Trust
Takehiko Iseki
The Common Guild
The Pagoda North project
Theatre Lapis
Town Hall Events Wirksworth
University of Stirling
Other small grants paid to 21 (22) institutions

9.

31.12.17£

31.12.16
£

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

1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
10,43819,982

24,438SUPPORT COSTS

Membership and publications
EventsSchools education

Management£
56,58386,71442,931

Other£
16,35225,06012,408Governance
costs
£
2,477
3,795
1,879

Totals£75,412
115,569
57,218186,228

53,8208,151

248,199

Support costs, included in the above, are as follows:20THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 20179.

SUPPORT COSTS - continued

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

10.

31.12.17

31.12.16

Schools
education£
23,945
1,927
1,079
14,432

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

Total
activities£
69,272
5,572
52,753

3,127
6,809
1,727
16,524
3,329
466

1,548
3,372
855
8,181
1,648
231

6,715
14,624
3,708
35,488
7,150
1,001

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

115,569

57,218248,199

210,019

31.12.17
£
7,150
6,715
14,62431.12.16
£
7,000
8,003
24,068

Membership
andpublications£
31,5592,540
1,422
19,022

Events£
48,365
3,892
2,180
29,150

2,040
4,443
1,126
10,783
2,173
304
75,412NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Other operating leases

11.

TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2017 nor for the year
ended 31 December 2016.
Trustees' expenses
During the year one member of the board was reimbursed for expenses:
Sir David Warren - £26 (2016: £116) in relation to miscellaneous expenses
The charity carried indemnity insurance for its trustees, for which a premium of £2,673 (2016: £1,085) was paid.

21

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201712.

STAFF COSTS

Wages and salaries
Social security costs
Other pension costs

31.12.17£
210,977
16,982
9,553

31.12.16£
213,599
14,991
9,423

237,512238,013

31.12.17
8

31.12.16
9

The average monthly number of employees during the year was as follows:
Employees
No employees received emoluments in excess of £60,000.
13.

2016 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIESUnrestricted
fund£

DesignatedFund£

Restricted
fund£

Total funds

INCOME FROM
Donations and legacies

381,259-

61,863443,122

Fundraising activities
Investment income
Other income

32,449451
22,543-

1,045-

33,494451
22,543

Total

436,702-62,908499,610£EXPENDITURE ON
Raising funds
Charitable activities
Membership and publications
EventsSchools education
Small grants

7,614

-

-

7,614

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

Total

423,929

22,42062,845509,194

NET INCOME/(EXPENDITURE)

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

Total funds brought forward

275,137

637,384149

912,670

TOTAL FUNDS CARRIED FORWARD

287,910

614,964212

903,086

RECONCILIATION OF
FUNDS

22

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 2017

14.

TANGIBLE FIXED ASSETS
Library£

Fixtures andfittings£

Totals£481,735

44,491

526,226

DEPRECIATION
At 1 January 2017
Charge for year-

31,051
6,715

31,051
6,715

At 31 December 2017-

37,76637,766

NET BOOK VALUEAt 31 December 2017

481,735

6,725

488,460

At 31 December 2016

481,735

13,440495,175

COST
At 1 January 2017 and 31 December 2017

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

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other debtors
Prepayments and accrued income

16.

31.12.17£
106,088
23,68731.12.16£
102,833
23,152

129,775

125,985

31.12.17
£
1,594
4,452
129
27,58731.12.16
£
(20)
5,170
302
39,65333,76245,105

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
VAT
Other creditors
Accruals and deferred income

23THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201717.

MOVEMENT IN FUNDS
Restricted funds:
The funds of the Society include restricted funds. The following are the unexpended balances of such funds:
Balance at
01.01.17£

Incoming
Resources£

Resources
Expended£

Balance at
31.12.17£

212-

65,789212
65,789-212

65,78966,001-

Balance at
01.01.16£

Incoming
resources£

Resources
expended£

Balance at
31.12.16
£

149
-

63
62,84562,845212-

149

62,90862,845212

Tohoku Earthquake Fund
Education Fund

Tohoku Earthquake Fund
Education Fund

Certain funds are restricted to expenditure relating to schools education and small grants.
Tohoku Earthquake Fund represents the donations made specifically for the Japan Society Tohoku Relief Fundby members and the general public. During 2011, the Society entered into an agreement with the SanaburiFoundation in Sendai to provide a framework for the disbursement of these funds in Tohoku.
Designated funds:
The income funds of the charity include the following designated funds which have been set aside out ofunrestricted funds by the trustees for specific purposes:

LibraryJapan office fund
Maintenance fund
Digitisation of books fund

Balance at
01.01.2017£

Incoming
resources£

Resources
expended£Transfers£

Balance at
31.12.2017£

481,735
105,242
8,000
19,984

-

-

5,000
-

481,735
105,245
13,00019,984

614,964---

619,96424

THE JAPAN SOCIETYNOTES TO THE FINANCIAL STATEMENTS - CONTINUED
for the Year Ended 31 December 201717.

MOVEMENT IN FUNDS – continued
Balance at
01.01.2016£
LibraryJapan office fund
Maintenance fund
Digitisation of books fund

Incoming
resources£

Resources
expended£

Balance at
31.12.2016£

Transfers£

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

22,102318-

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

637,384-

22,420-614,964

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

RELATED PARTY DISCLOSURESThe Japan Society is a corporate director of Japan Matsuri. The Japan Society gave a contribution of £2,722(2016: £2,716) during the year.

25THE JAPAN SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
for the Year Ended 31 December 2017

Unrestricted
funds£

Restrictedfunds£

31.12.17
Total
funds
£

31.12.16
Total
funds
£

78,535228,250
5,000
23,457
4,985

65,380-78,535
293,630
5,000
23,457
4,985

82,129299,91425,00023,681
12,398340,227

65,380405,607443,122

24,165-409

24,165409

32,4491,045

24,165409

24,57433,494

86

-

86

451

5,230
12,323
7,500

-

5,230
12,3237,500

4,243
10,8007,500

25,053-25,05322,543

389,53165,789455,320499,610

15
4,000

-

15
4,000

2,379
5,235

4,015

-

4,015

7,614

76,141
8,623
4,872
56,689-30,967212
14,84019,982

107,108
8,623
4,872
56,901
14,84019,982

144,327
9,419
9,423
87,06915,88525,438146,325

66,001

212,326

291,561

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

Fundraising activities
Events income
Education income and direct projects

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

Total incoming resources

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

Charitable activities
Wages
Social security
Pensions
Events and Publications
Education
Grants to institutions

This page does not form part of the statutory financial statements
26

THE JAPAN SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
for the Year Ended 31 December 2017

Unrestricted
funds£

Restrictedfunds£

31.12.17
Total
funds
£

31.12.16
Total
funds
£

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

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

69,272
5,572
52,753
8,003

186,228-

186,228

135,600

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

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

24,068
1,055
37,082
2,808
544
(135)

53,820-53,82065,422

7,150
1,001

-

7,150
1,001

7,000
1,997

8,151

-

8,151

8,997

Total resources expended

398,539

66,001

464,540

509,194

Net expenditure(9,008)(212)(9,220)(9,584)

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

Other
Office expenses
General expenses
Consultancy costs
Irrecoverable VATEntertainment
Exchange rate loss/gain

Governance costs
Auditors' remuneration
Bank charges

This page does not form part of the statutory financial statements27