This presentation was made by Nobuhisai Sakamoto, Japan, at the 19th OECD Senior Financial Management and Reporting Officials Symposium held at the OECD Conference Centre, Paris, on 4-5 March 2019

1. Financial management & Reporting
by the government of Japan
- Progress and way forward -
1
Government of Japan
OECD Public Sector Accruals
Symposium Paris,
March 4-5. 2019
Nobuhisa Sakamoto
Director, Public Accounting Office, Budget Bureau,
Ministry of Finance, Japan

2. 2
Government of Japan
 At the national level, since fiscal year
2003(Apr.2003-Mar.2004), we have published
“Government Financial Statements” based on
“accrual basis”.
Balance sheet of “Government Financial Statements”
(unit : trillion yen）
March 31, 2016 March 31, 2017 Difference March 31, 2016 March 31, 2017 Difference
<Assets> <Liabilities>
Cash and Deposit 55.2 47.9 (7.4) Account payable etc 11.9 12.0 0.1
Securities 119.9 118.5 (1.4) Financing bills 84.7 77.0 (7.7)
Account receivable
etc 11.0 10.9 (0.1) Government bonds 943.3 966.9 23.6
Prepaid expense 1.9 5.5 3.6 Borrowings 30.8 31.4 0.7
Loans 115.6 112.8 (2.7) Money in custody 6.5 6.5 (0.0)
Money in trust 109.1 111.5 2.4 Liability reserve 9.7 9.1 (0.6)
Allowance for doubtful
debt (1.8) (1.6) 0.1
Deposit reserved for public
pension 118.8 120.1 1.3
Tangible assets 181.6 182.5 0.9
Allowance for retirement
benefits 7.5 7.0 (0.5)
Intangible assets 0.3 0.3 0.0 Other liabilities 8.5 8.8 0.3
Investments 72.5 74.8 2.3
Other assets 7.5 7.6 0.1 Total liabilities
1,221.6
9,397.1*
1,238.9
9,529.8*
17.3
132.7*
<Difference b/w assets and liabilities>
Difference b/w assets and
liabilities
(548.9)
(4,222.2)*
(568.4)
(4,372.0)*
(19.5)
(149.8)*
Total assets
672.7
5,174.9*
670.5
5,157.7*
(2.2)
(17.1)*
Sum of liabilities and
difference b/w assets and
liabilities
672.7
5,174.9*
670.5
5,157.8*
(2.2)
(17.1)*
*unit: billion euro (For your information, this is calculated as 1euro≒130yen)

3. Government of Japan
3
 In January 2015, Japanese central government
(Ministry of Internal Affairs) requested all local
governments to prepare financial statements on
an accrual basis, and fixed asset records.
Status as of March 31, 2018
Local governments
Total Prefectures Cities / Towns
financial statements
(accrual basis)
1,577／1,788
（88.2％）
41／47
（87.2％）
1,536／1,741
（88.2％）
fixed asset records 1,704／1,788
（95.3％）
43／47
（91.5％）
1,661／1,741
（95.4％）

4. Government of Japan
4
 Since the fiscal year 2014(Apr.2014-Mar.2015),
on selective government projects, we are trying
to calculate “full cost information”.
 In the fiscal year 2019(Apr.2019-Mar.2020), for
the annual budgeting process, “full cost
information” was prepared for 65 government
projects* and used as “reference material” in our
Budget Bureau, for compiling the annual budget
for each program.
* There are about 5,000 government projects in Japan.

5. Government of Japan
5
The way of calculation “full cost information”:
Full cost associated with individual government project
is calculated, based on the information within the
Government Financial Statements, by adding up
individual costs as follows.
cost of
employees
other costcost of office buildings, etc.
(depreciation cost)
Direct cost of
project++ +
Full cost information
Overhead cost