Another “souteigai” or outside of immagination – who bears the cost?
TweetIt has been told that The Tokyo Electric Power Company (TEPCO) assumed that the tsunami damage was outside of imagination for its Fukushima Nuclear Power Station #1.
Today we do not discuss about it was right or not, but we may see there was another “outside of imagination” for this matter.
It was not clear who would bear the cost in case of this kind of accidents.
TEPCO is now considered to take the primary responsibility, but could have the exemption according to the Atomic Energy Damage Compensation Law. However the condition of the exemption was not clearly defined and many discussions are made how to deal with the law.
This can happen not only in nuclear power station accidents but also in daily business contracts. However most of typical Japanese contracts do not define detailed clauses but just describe “in case of matters that this contract does not define, the both parties may deal with such matters with discussions faithfully”.
Essentially this means a matter outside of imagination will be discussed when happened.
Nobody wants to bear costs over his/her responsibilities. In case of the matters “outside of imagination”, many various arguments may incur who will bear the cost, and the time goes by without any conclusions.
The absence of the conclusion may affect on the cost estimation in financial closing.
Generally a provision has to be recognized when the cost will incur probably and the amount can be estimated rationally. However it cannot be estimated if the conclusion is not made who bears the cost.
It may trouble accountants.
When you make a contract, it would be better to define many matters without easily leaving as “outside of imagination”, and you may avoid useless arguments and may be able to respond financial actions.
Accountants may have to prepare for such cases with “imagination” as day-to-day business.