REGULATIONS CONCERNING TERMINOLOGY, FORMS AND METHODS OF PREPARATION OF FINANCIAL STATEMENTS, ETC. Copyright Roderick Seeman
Article 8. Definitions
1. The "within one year" of these regulations shall mean days within one year calculated from the day following the date of the balance sheet.
2. The "normal transactions" of these regulations shall mean transactions which happen recurringly or in short term cycles in the business activities in the objective of the said company.
3. The "parent company" of these regulations means a company which in reality holds a majority of the voting rights (including those situations where voting rights are not held based on the provisions of Article 241 Paragraph 3 of the Commercial Code, hereinafter the same in this Article) of another company and a "subsidiary company" means the said other company. In those situations where the parent company and a subsidiary company or the subsidiary alone in reality hold a majority of the voting rights of another company, that said other company as well shall be regarded as a subsidiary of the parent company.
4. In those situations where a company (where the company has a subsidiary, including that subsidiary) in reality holds 20% or more to 50% or less of the voting rights of another company and where the said company exerts substantial influence on the finances and planning of the said other company through such relationship as personnel, financing, technology and transactions, the "affiliated company" of these regulations shall mean such said other company.
5. The "related company" of these regulations shall mean the parent company, subsidiaries and affiliated companies of the company which should file the financial statements based on the provisions of the Law (hereinafter "financial statement filing company) and where the financial statement filing company is an affiliate of another company, the said other company.
6. In these regulations, "futures transactions" shall be the transactions listed hereunder:
i. The securities futures transactions of Article 2, Paragraph 13 of the Law and the securities index futures transactions of Paragraph 14 of the same Article (including similar transactions in foreign securities markets (meaning the foreign securities markets provided for in Article 2, Paragraph 14, Section 3b of the Law. In the next paragraph the same)).
ii. The financial futures transactions provided for in Article 2, Paragraph 4, Sections 1 and 2 of the Financial Futures Law (Law no. 77 of 1988) (including similar transactions in overseas financial futures markets (meaning the overseas financial futures market provided for in Article 2, Paragraph 7 of the Financial Futures Law. In the next paragraph the same)
iii. The futures transactions provided for in Article 2, Paragraph 6 items 1-3 of the Commodities Trading Law (Law no. 239 of 1950) (including similar transactions in foreign markets (in the next paragraph "foreigh commodities markets) corresponding to commodities markets (meaning commodities markets provided in Paragraph 7 of the same Article. In the next paragraph the same)
7. In these regulations, "options transactions" shall be the transactions listed hereunder:
i. Securities options transactions provided for in Article 2, Paragraph 15 of the Law (including similar transactions in foreign securities markets).
ii. Financial futures transactions provided for in Article 2, Paragraph 4, Section 3 of the Financial Futures Law (including similar transactions in overseas financial futures markets)
iii. Transactions provided for in Article 2, Paragraph 6, Section 4, and Article 2, Paragraph 8, Section 1 (including similar transactions in overseas commoditied markets)
iv. Transactions similar to transactions listed in Sections 1 through 3 (including transactions other than transactions on securities markets (meaning securities markets provided for in Article 2, Paragraph 12 of the Law), foreign securities markets, financial futures markets (meaning financial futures markets provided for in Article 2, Paragraph 6 of the Financial Futures Law), overseas financial futures markets, commodities markets or foreign commodities markets (meaning "market transactions in the following Article and in Article 8-8)
8. In these regulations, "futures swap transactions' (sakiwatashi torihiki) shall be the transactions listed hereunder.
i. Trading transactions whereby the parties to the said transaction promise at a set time in the future to deliver and receive currency and countervalue (meaning "foreign exchange futures transactions", excluding those classifiable as a financial futures transaction listed in Paragraph 6, Item 2.
ii. Foreign exchange futures swap transactions provided for in Article 35, Paragraph 1, Item 7 of the Bank Law Enforcement Regulations (Ministry of Finance Ordinance No. 10 of 1982)
iii. Interest rate swap transactions provided for in Article 2, Paragraph 5, Section 3 of the Ministerial Ordinance Concerning Securities Companies (Ministry of Finance Ordinance No. 52 of 1965)
iv. Transactions similar to futures transactions that are transactions other than the transactions listed in items i-iii above.
9. In these regulations, "swap transactions" shall be the transactions listed hereunder:
i. Transactions where the parties thereto mutually promise to pay monies based on a foreign exchange market designated by the said parties concerning an amount of foreign currency decided by the parties to be principal and interest.
ii. Transactions where the parties thereto mutually promise to pay monies based on interest rates that each of the parties to the transactions have decided concerning a monetary amount determined as the principal.
iii. Transactions where the parties thereto mutually promist to pay monies based on prices that each of the parties to the transaction have decided concerning the volume of a transaction in a commodity that the parties have designated as the object of the transaction.
iv. Transactions which are similar to the transactions of Items i-iii above.
10. In these regulations, "derivative transactions" means the transactions listed in Sections 6-9 above.