Accounting Policy

[General Rules]

Article 1
This is to define the general rules of accounting treatment of the Dreams Mountaineering Teams (DMT). In addition, the accountant approved by the Board of the DMT conducts the accounting treatment.

[Settlement of Accounts]

Article 2
The DMT keeps a balance of income report and discloses financial reports in order to clarify the contents.

Article 3
A financial period is set from January 1 to December 31.

Article 4
Income means the income to be expended to achieve the purpose of the DMT defined in its Membership Policy.

Article 5
Expenses mean the expense to be spent to achieve the purpose of the DMT defined in its Membership Policy. The amount is based on the actual amount spent.

Article 6
In case expenses exceed income, the excess amount is paid by surplus carried forward or surplus of the following years.

Article 7
In case income exceeds expenses, the excess amount will be reported as a surplus for the current term. The surplus for the current term is utilized to pay off expense surplus of the past fiscal year.

[Accounts for Income and Expenses]

Article 8
Items of income accounts are defined as follows.
1. Donations
2. Advertising income
3. Interest income
4. Miscellaneous income

Article 9
Items of expense accounts are defined as follows
1. Activity expense
1) Facility expenses (fees for training facilities, measurement facilities, etc.)
2) Other expenses (fees for royality, appliances usage, etc.)
2. Advertisement expenses
1) Press conference expenses
2) Public relations expenses
3) Production and maintenance fees for the website
4) Expenses for publication of newsletters
3. Other equipment expenses
1) machinery, tools and equipment expenses (if the purchased amount exceeds JPY 50,000.- is reported under the Asset list )
2) Fees for expendable supplies (even if the purchased amounts less than JPY 50,000.-, exceptional cases may exist and be reported under the Asset list)
3) Maintenance and repair fees (if repairs are required every several months at large expense, a reserve fund will be established for this purpose)
4. Rental and leasing expenses
5. Training expenses (fees for safety training and relief course, etc)
6. Convention expenses (fees for meeting rooms, refreshments and documentation etc.)
7. Communications expenses (such as postage, telephone charges, internet provider charges, etc.)
8. Printing fees (for copying, DPE, etc.)
9. Office supplies costs (such as stationary and paper costs, etc.)
10. Travel and transportation expenses (charges for toll roads, gas, transportation, travel and accommodation, etc.)
11. Entertainment costs (costs for transportation and gifts used for guest speakers and supporters)
12. Cost for publications (cost for purchasing books for DMT activities, etc.)
13. Insurance costs (Premium paid for overseas travel insurance, relief insurance at minimum level)
14. Outsource expenses (cost to hire experienced mountain-climbing guides, interpreters, etc.)
15. Miscellaneous fees (costs not included in the above)

Article 10
Items for accounts to balance income and expenses are defined as follows:
1. Advances received (Income for the next fiscal term received during the current term) Income received in advance will not be regarded as income for the current term.
2. Advance payment (Expenses for the next fiscal term paid during the current term) Expenses paid in advanced will not be regarded as expenses for the current term.
3. Accrued income (Income earned during the current term yet to be received) Income receivable will be regarded as income for the current term.
4. Accrued expense (Expense recorded during the current term yet not paid) Unpaid expense will be regarded as expense for the current term.
5. Reserve
If a large amount of expense is expected to occur every several months, such expenses can be registered as reserve over a few years.
6. As much as possible, the DMT intends not to use these accounts except 4. Accounts 1-4 above are considered as accrued/deferred accounts.

[Accounting Treatment]

Article 11
Account Books
The following account books will be used for accounting for the DMT
1. Cash Account Book
2. Deposit Account Book
3. Non-cash Account Book
4. Cashflow Statement and Statement of Surplus
5. Receipt List
6. Inventory List

Article 12
Cash Account Book
The Cash Account Book is to record cash movement of the DMT痴 Cash account in order of dates.

Article 13
Non-cash Account Book
The Non-cash Account Book is to record non-cash items (i.e. accrued, deferred and reserve income/expense).

Article 14
Deposit Account Book
The Deposit Account Book is to record cash movement of the DMT痴 deposit account in order of dates.

Article 15
Cashflow Statement and Statement of Surplus
At fiscal year end, income and expenses of the current term are classified and calculated per accounts based on the Cash Account Book, the Deposit Account Book and the Non-cash Account Book in order to clarify the DMT痴 account books.

Article 16
Receipt List
1. All expenses utilized by the DMT require receipts. (Receipts are attached to Receipt list in order of dates)
2. In case the receipts are not available such as for transportation fees, it is also possible to use a separate note with details of expense recorded and obtain approval by an officer of the DMT.
3. All the receipts require the approval seal of both the accountant in charge and an officer of the DMT.

Article 17
Inventory List
1. Machinery, tools and equipment subject to inventory listing need to be reported under 羨ssets・
2. In case of destruction or cancellation of machinery, tools and equipment listed in inventory requires a document with the approved seal of the accountant in charge and an officer of the DMT to be attached.

[Budget]

Article 18
The DMT is responsible for reporting an annual budget in line with the DMT痴 activity policy.

[Settlement of Accounts]

Article 19
The settlement of accounts will be conducted by the accountant appointed by the Board Meeting of the DMT.

Article 20
The contents of the financial report will be audited by the auditor. The following was appointed as the auditor.

Hirofumi Naito, Represnetative, Non-profit organization(NPO) Tanto
1202-7, Wakamiya, Ooazo-Nagatoro, Saku-shi, Nagano-ken, 385-0021 Japan

Execution date: January 1, 2006