Securities code: 688021 securities abbreviation: Aofu Environmental Technology Co.Ltd(688021) Announcement No.: 2022-010 Aofu Environmental Technology Co.Ltd(688021)
Announcement on changes in accounting policies
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law. Important content tips:
This change of accounting policy does not involve the retroactive adjustment of Aofu Environmental Technology Co.Ltd(688021) (hereinafter referred to as “the company”) in previous years, and will not have a significant impact on the company’s financial status, operating results and cash flow, and there is no damage to the interests of the company and shareholders.
The company held the ninth meeting of the third board of directors and the eighth meeting of the third board of supervisors on February 24, 2022, and deliberated and adopted the proposal on the change of accounting policies of the company. The specific contents are announced as follows: I. overview of this accounting policy change
According to the accounting standards for Business Enterprises No. 21 – leasing (CK [2018] No. 35, hereinafter referred to as the “new leasing standards”) revised and issued by the Ministry of finance of the people’s Republic of China in December 2018, enterprises that are required to be listed at the same time at home and abroad and enterprises that are listed abroad and adopt international financial reporting standards or accounting standards for business enterprises to prepare financial statements, Effective from January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. Therefore, according to the regulations, the company will implement the new leasing standards from January 1, 2021. 2、 Specific situation and impact on the company
1. Contents of the new lease standards implemented this time
(1) Under the new lease standards, except for short-term leases and low value asset leases, the lessee will no longer distinguish between financial leases and operating leases. All leases will adopt the same accounting treatment, and the right to use assets and lease liabilities must be recognized;
(2) For the right to use assets, if the lessee can reasonably determine that it obtains the ownership of the leased assets at the expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased assets. If it is impossible to reasonably determine that the ownership of the leased asset can be obtained at the expiration of the lease term, depreciation shall be accrued within the shorter of the lease term and the remaining service life of the leased asset. At the same time, the lessee shall determine whether the right of use assets are impaired and account for the identified impairment losses;
(3) For lease liabilities, the lessee shall calculate the interest expenses of the lease liabilities in each period of the lease term and record them into the current profits and losses;
(4) For short-term leases and low value asset leases, the lessee may choose not to recognize the right of use assets and lease liabilities, and record them into the relevant asset costs or current profits and losses according to the straight-line method or other systematic and reasonable methods during each period of the lease term;
2. The impact of the implementation of the new leasing standards on the company
This accounting policy change is made by the company in accordance with the relevant regulations and requirements issued by the Ministry of finance. Comply with the provisions of relevant laws and regulations and the actual situation of the company, and do not involve the retroactive adjustment of the company’s previous years. The implementation of the new leasing standards will not have a significant impact on the company’s financial situation, operating results and cash flow, and there is no damage to the interests of the company and shareholders.
3、 Concluding observations of independent directors, the board of supervisors and the audit committee
The independent directors, the board of supervisors and the audit committee of the company all agree with the change of the company’s accounting policies and believe that the change of the company’s accounting policies and the implementation of the new lease standards are reasonable changes in accordance with the requirements of relevant documents of the Ministry of finance, which can more objectively and fairly reflect the company’s financial status, operating results and actual situation, and is conducive to providing more reliable More accurate accounting information complies with the relevant provisions of the accounting standards for business enterprises and the actual situation of the company, and there is no damage to the interests of the company and shareholders.
It is hereby announced.
Aofu Environmental Technology Co.Ltd(688021) board of directors February 26, 2022
