Unrealized profit (Hyoka eki), Unrealized loss (Hyoka son) of securities and Corporate tax
In the event your company owns securities (Yuka shoken), these securities are classified according to purpose of possession.
1 Securities for sales and purchase for short term
2 Securities other than mentioned 1
If your company possess Securities in order to acquire profit by selling and buying mainly for short term, your company needs to revaluate the securities at the time of business year end.
In the case your company purchased 100 yen per a share and if market value of the share at the time of fiscal year end is 150 yen, the 50 yen should be included in taxable income of your company.
In the case your company purchased 100 yen per a share and if market value of the share at the time of fiscal year end is 80 yen, your company can record the 20 yen as loss of your company.
If your company has possessed the Securities in order to control other company, it does not need to revaluate Securities generally.
( It needs to possess 20% or more of other company )