Securities code: Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) securities abbreviation: ST Shuanghuan Announcement No.: 2022022 Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707)
Announcement on changes in accounting policies
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) (hereinafter referred to as “the company”) held the 8th meeting of the 10th board of directors on March 8, 2022, deliberated and adopted the proposal on changes in accounting policies. According to the relevant notice newly issued by the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”), the company will change the corresponding accounting policies. This change of accounting policies does not need to be submitted to the general meeting of shareholders for deliberation. The specific circumstances of this change of accounting policies are as follows:
1、 Overview of changes in accounting policies
(I) reasons for change
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 in December 2018 requires enterprises listed at home and abroad and enterprises listed abroad and preparing financial statements using international financial reporting standards or accounting standards for business enterprises to take effect from January 1, 2019; Other enterprises that implement the accounting standards for business enterprises shall be implemented as of January 1, 2021. The company changes the corresponding accounting policies in accordance with the above notice of the Ministry of finance.
(II) date of change
According to the above provisions, the company, as a domestic listed enterprise, will implement the new leasing standards from January 1, 2021.
(III) accounting policies adopted before change
Before this change, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, application guidelines of accounting standards for business enterprises, interpretation announcement of accounting standards for business enterprises and other relevant regulations issued by the Ministry of finance.
(IV) accounting policies adopted after change
After this change, the company will implement the relevant provisions of the above relevant standards and notices issued by the Ministry of finance. Other unchanged parts shall still be implemented in accordance with the accounting standards for business enterprises – basic standards, various specific accounting standards, the application guide of accounting standards for business enterprises, the interpretation announcement of accounting standards for business enterprises and other relevant provisions issued by the Ministry of Finance in the early stage.
(V) main contents of this accounting policy change
1. Under the new lease standards, except for short-term leases and low value leases, the lessee will no longer distinguish between financial leases and operating leases. All leases are subject to the same accounting treatment, and the right to use assets and lease liabilities need to be recognized; 2. For the right to use assets, if the lessee can reasonably determine that it will obtain 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 the lease liability, the lessee shall calculate the interest expense of the lease liability in each period of the lease term and record it into the current profit and loss;
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 and current profits and losses according to the straight-line method or other systematic and reasonable methods in each period of the lease term.
2、 Impact of this accounting policy change on the company
According to the convergence provisions of the old and new standards, the company will implement the new leasing standards from January 1, 2021. According to the cumulative impact of the first implementation of the standards, the amount of retained earnings and other relevant items in the financial statements at the beginning of the year when the standards are first implemented will be adjusted, and the information of comparable periods will not be adjusted.
This accounting policy change is made by the company in accordance with the relevant provisions and requirements of the Ministry of finance. The changed accounting policy can objectively and fairly reflect the company’s financial status and operating results, and comply with the provisions of relevant laws and regulations and the actual situation of the company. This accounting policy change 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、 Documents for future reference
1. Resolutions of the 8th meeting of the 10th board of directors of the company.
Hubei Shuanghuan Science And Technology Stock Co.Ltd(000707) board of directors March 10, 2022
