Securities code: Wuxi Chipown Micro-Electronics Limited(688508) securities abbreviation: Wuxi Chipown Micro-Electronics Limited(688508) Announcement No.: 2022014 Wuxi Chipown Micro-Electronics Limited(688508)
Announcement on changes in accounting policies
The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities for the authenticity, accuracy and integrity of the contents.
Important content tips:
According to the relevant provisions of the accounting standards for Business Enterprises No. 21 – leasing (hereinafter referred to as the “new leasing standards”) revised by the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”), Wuxi Chipown Micro-Electronics Limited(688508) (hereinafter referred to as ” Wuxi Chipown Micro-Electronics Limited(688508) ” or “the company”) shall implement the new leasing standards as of January 1, 2021.
This accounting policy change is a corresponding change made by the company in accordance with the relevant accounting standards for business enterprises revised by the Ministry of finance. It does not involve retroactive adjustment of previous years, will not have an impact on the disclosed financial statements of the company, and will not have a significant impact on the financial status, operating results and cash flow of the company. 1、 Overview of changes in accounting policies
This accounting policy change is a change to some of the company’s current accounting policies in accordance with the accounting standards for Business Enterprises No. 21 – leasing revised and issued by the Ministry of Finance in 2018.
According to the requirements of the new leasing standards, as a domestic listed company, the company will implement the new leasing standards from January 1, 2021 and make corresponding changes to the relevant accounting policies originally adopted. This accounting policy change is made in accordance with the relevant accounting standards for business enterprises issued by the Ministry of finance, which will not have a significant impact on the company’s profits and losses, total assets and net assets, and does not involve the retroactive adjustment of previous years. It does not need to be submitted to the board of directors and the general meeting of shareholders for review. 2、 Details of this accounting policy change
(I) under the new leasing standards, the lessee will no longer distinguish between financial leasing and operating leasing. All leases will adopt the same accounting treatment, and the right to use assets and lease liabilities must be recognized;
(II) 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;
(III) 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;
(IV) 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 in each period of the lease term.
3、 Impact of changes in accounting policies on the company
The company has implemented the new lease standards since January 1, 2021. According to the connection provisions of the new lease standards, the company does not need to restate the comparable amount in the previous period. The difference adjustment between the new lease standards and the original standards implemented for the first time is included in the retained earnings at the beginning of 2021. The implementation of the new leasing standards has no 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. It is hereby announced.
Wuxi Chipown Micro-Electronics Limited(688508) board of directors March 18, 2022
