Article 61-9Inclusion in Gross Profits or Deductible Expenses of Profits or Losses on the Difference from the Conversion of Assets in a Foreign Currency at the End of the Period
第六十一条の九（外貨建資産等の期末換算差益又は期末換算差損の益金又は損金算入等）
In the case where a domestic corporation holds the following assets and liabilities (hereinafter referred to as "assets, etc. in a foreign currency" in this Division) as of the end of a business year, the amount in Japanese yen of the assets, etc. in a foreign currency as of the time is to be the amount converted by the method specified in the following items in accordance with the category of the assets, etc. in a foreign currency (with regard to the assets, etc. in a foreign currency listed in item (i), item (ii)(b), and item (iii), by a method that the domestic corporation selected from those prescribed in these provisions, and when the domestic corporation had not selected any method, by a method from those prescribed in these provisions that is specified by Cabinet Order):
claims in a foreign currency (meaning monetary claims to be paid in a foreign currency) and debts in a foreign currency (meaning monetary debts to be paid in a foreign currency):The method listed in (a) or (b)
外貨建債権（外国通貨で支払を受けるべきこととされている金銭債権をいう。）及び外貨建債務（外国通貨で支払を行うべきこととされている金銭債務をいう。） イ又はロに掲げる方法
Conversion method on an accrual basis (meaning a method to convert the amount of assets, etc. in a foreign currency held as of the end of a business year (hereinafter referred to as "at the end of the period" in this item) at the foreign exchange rate used for converting the amount of transactions in a foreign currency that caused the acquisition or occurrence of the assets, etc. in a foreign currency into Japanese yen pursuant to the provisions of paragraph (1) of the preceding Article and deem the converted amount (with regard to the portion of the assets, etc. in a foreign currency to which the provisions of paragraph (2) of the Article applied upon converting the amount of transactions in a foreign currency that caused the acquisition or occurrence thereof into Japanese yen, the amount in Japanese yen determined under a foreign exchange futures contract, etc.) to be the amount in Japanese yen of the assets, etc. in a foreign currency as of the end of the period; the same applies in the following item and item (iii))
Conversion method at the current exchange rate (meaning a method to convert the amount of assets, etc. in a foreign currency held at the end of the period at the foreign exchange rate prevailing at the end of the period and deem the converted amount (with regard to the portion of the assets, etc. in a foreign currency to which the provisions of paragraph (2) of the preceding Article applied upon converting the amount of transactions in a foreign currency that caused the acquisition or occurrence thereof into Japanese yen, the amount in Japanese yen determined under a foreign exchange futures contract, etc.) to be the amount in Japanese yen of the assets, etc. in a foreign currency at the end of the period; the same applies in this Article)
securities in a foreign currency (meaning the securities specified by Ordinance of the Ministry of Finance to be securities to be redeemed, refunded, and otherwise similarly disposed of in a foreign currency): The method specified as follows in accordance with the category of the following securities:
外貨建有価証券（償還、払戻しその他これらに準ずるものが外国通貨で行われる有価証券として財務省令で定めるものをいう。） 次に掲げる有価証券の区分に応じそれぞれ次に定める方法
Securities for buying and selling as prescribed in Article 61-3, paragraph (1), item (i) (Inclusion of Valuation Gains or Losses on Securities for Buying and Selling in Gross Profits or Deductible Expenses):Conversion method at the current exchange rate
第六十一条の三第一項第一号（売買目的有価証券の評価益又は評価損の益金又は損金算入等）に規定する売買目的有価証券 期末時換算法
Securities not for buying and selling as prescribed in Article 61-3, paragraph (1), item (ii) (limited to those with provisions concerning a redemption date and redemption price):Conversion method on an accrual basis or conversion method at the current exchange rate
第六十一条の三第一項第二号に規定する売買目的外有価証券（償還期限及び償還金額の定めのあるものに限る。） 発生時換算法又は期末時換算法
Securities other than those listed in (a) and (b):Conversion method on an accrual basis
deposits in a foreign currency:Conversion method on an accrual basis or conversion method at the current exchange rate
foreign currency:Conversion method at the current exchange rate
外国通貨 期末時換算法
In the case where a domestic corporation holds assets, etc. in a foreign currency (limited to those whose amount is converted into the amount in Japanese yen by the conversion method at the current exchange rate; hereinafter the same applies in this paragraph) as of the end of a business year, the amount equivalent to the difference between the amount of the assets, etc. in a foreign currency that is converted into Japanese yen by the conversion method at the current exchange rate and their book value as of the time (referred to as the "foreign exchange conversion difference" in the following paragraph) is included in gross profits or deductible expenses, when calculating the amount of income for the business year.
In the case where a domestic corporation transfers assets, etc. in a foreign currency (limited to those whose amount would be converted into the amount in Japanese yen by the conversion method at the current exchange rate if the day preceding the date of the qualified company split, etc. were the last day of a business year; hereinafter the same applies in this paragraph) to a succeeding corporation in a company split, a corporation receiving a capital contribution in kind or a corporation receiving a distribution in kind as a result of a qualified company split, a qualified capital contribution in kind or a qualified in-kind distribution (in the case of a qualified in-kind distribution, excluding a distribution of all of the residual assets; hereinafter referred to as a "qualified company split, etc." in this paragraph), the amount equivalent to the foreign exchange conversion difference pertaining to the assets, etc. in a foreign currency that would be calculated pursuant to the provisions of the preceding paragraph if the day preceding the date of the qualified company split, etc. were the last day of a business year is included in gross profits or deductible expenses, when calculating the amount of income for the business year containing the date of the qualified company split, etc.
内国法人が適格分割、適格現物出資又は適格現物分配（適格現物分配にあつては、残余財産の全部の分配を除く。以下この項において「適格分割等」という。）により分割承継法人、被現物出資法人又は被現物分配法人に外貨建資産等（当該適格分割等の日の前日を事業年度終了の日とした場合に期末時換算法によりその金額の円換算額への換算をすることとなるものに限る。以下この項において同じ。）を移転する場合には、当該適格分割等の日の前日を事業年度終了の日とした場合に前項の規定により計算される当該外貨建資産等に係る為替換算差額に相当する金額は、当該適格分割等の日の属する事業年度の所得の金額の計算上、益金の額又は損金の額に算入する。
The conversion of the amount of assets, etc. in a foreign currency into the amount in Japanese yen in the case where the foreign exchange rates fluctuate significantly, procedures for selecting a method to be used to convert the amount of assets, etc. in a foreign currency into the amount in Japanese yen, disposition of the foreign exchange conversion difference prescribed in paragraph (2) in the following business year, and other necessary matters concerning the application of the provisions of the preceding three paragraphs are specified by Cabinet Order.