On March 30, 2007, the Japan Tax Reform act was published by the Ministry of Finance Japan and was enacted on April 1, 2007. The reform significantly impacted the methods used for depreciation of assets in Japan and provided new guidelines on the calculation and treatment of depreciation of assets. The purpose of the new deprecation rules laid down in the FY2007 Tax Reforms is to increase the Depreciation expenses by abolishing salvage value and increasing the depreciation limit on assets so that the companies can reduce National and Local taxes. Additionally, new depreciation methods were introduced and extended depreciation feature made available for assets acquired before April 1, 2007. In order to address the Japanese depreciation requirements, the following Japan specific depreciation methods have been created and seeded within Oracle Assets.

This section covers the following topics:

• Japanese Straight Line Depreciation Method

• Japanese 250% Declining Balance Depreciation Method

• Japanese Straight Line Extended Depreciation

• Windows, Tabs, and Menu Items Specific to Japan Tax Reforms

• Asset Impairment Changes for Japan