Stock Code: Jiangsu Azure Corporation(002245) stock abbreviation: Jiangsu Azure Corporation(002245) No.: 2022022 Jiangsu Azure Corporation(002245)
Announcement on changes in accounting policies and accounting estimates
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.
Special tips:
This accounting policy change is a reasonable change made by the company in accordance with the interpretation announcement of the accounting standards for business enterprises of the Ministry of Finance and the implementation of Q & A and other relevant provisions, and will not have a significant impact on the operating income, net profit, net assets and other financial results of the listed company. This accounting estimate change adjusted the expected credit loss rate classified as commercial acceptance bill, and increased the amount of credit impairment loss in 2021.
1、 Overview of changes in accounting policies
1. Reason for change
(1) On January 26, 2021, the Ministry of Finance issued the notice on printing and distributing the interpretation of accounting standards for Business Enterprises No. 14 (CAI Kuai [2021] No. 1) (hereinafter referred to as “interpretation of Standards No. 14”), which stipulates the accounting treatment of social capital parties on government and social capital Cooperation (PPP) project contracts and the accounting treatment of changes in the basis for determining the cash flow of relevant contracts caused by the reform of benchmark interest rate.
(2) On December 30, 2021, the Ministry of Finance issued the notice on printing and distributing the Interpretation No. 15 of the accounting standards for business enterprises (CAI Kuai [2021] No. 35) (hereinafter referred to as “the Interpretation No. 15 of the standards”), which stipulates the accounting treatment of the external sales of products or by-products produced before the fixed assets reach the expected usable state or in the process of research and development, and the relevant presentation of centralized fund management Judgment on loss contracts. (3) On November 2, 2021, the accounting department of the Ministry of Finance issued a question and answer on the implementation of the accounting standards for business enterprises, which clearly stipulates that: generally, the transportation activities for the performance of the customer’s contract before the control of the enterprise’s goods or services is transferred to the customer do not constitute a single performance obligation, and the relevant transportation costs should be regarded as the contract performance costs, The amortization is recognized on the same basis as the amortization of goods or services in the current period. The contract performance cost shall be listed in the “operating cost” item of the income statement.
2. Accounting policies adopted by the company before change
Before the change of accounting policy, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, subsequent issued and revised accounting standards for business enterprises, application guide of accounting standards for business enterprises, interpretation announcement of accounting standards for business enterprises and other relevant regulations. Before this change, the company listed the relevant transportation costs in the “sales expenses” item.
3. Accounting policies adopted by the company after change
After this change, the company will implement standard Interpretation No. 14 and standard Interpretation No. 15. At the same time, the company will list the transportation fees and customs declaration fees incurred in performing the customer contract in the “operating cost” item in accordance with the relevant Q & A regulations of the accounting department of the Ministry of finance.
The accounting standards for business enterprises, the announcement of accounting standards for business enterprises and other relevant provisions that have not been promulgated by the Ministry of Finance shall still be implemented in accordance with the accounting standards for business enterprises, the specific changes of accounting standards for business enterprises and other relevant provisions.
4. Change date
(1) The standard Interpretation No. 14 shall come into force as of the date of promulgation. The business specified in the new standard Interpretation No. 14 from January 1, 2021 to the implementation date shall be adjusted according to the standard Interpretation No. 14.
(2) The contents of the standard Interpretation No. 15 “accounting treatment for the external sales of products or by-products produced before the fixed assets reach the expected usable state or in the process of R & D” and “judgment on loss contracts” shall be implemented as of January 1, 2022; The content of “relevant presentation on centralized fund management” shall go into effect as of the date of promulgation.
(3) The company originally included the transportation expenses and customs declaration expenses incurred in performing the customer contract into the sales expenses. According to the implementation Q & A issued by the Ministry of Finance in November 2021, they will be included into the operating cost from January 1, 2021.
2、 Overview of changes in accounting estimates
1. Reason for change
According to the relevant provisions of the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments, in order to more reasonably reflect the future expected credit loss of notes receivable and provide investors with more reliable and accurate accounting information, combined with the current situation and the prediction of future economic conditions, the company reviewed the expected credit loss of notes receivable and adjusted the expected credit loss rate classified as commercial acceptance bills, To more objectively and fairly reflect the company’s financial situation and operating results.
2. Accounting estimates adopted by the company before the change
Before this accounting estimate change, the expected credit loss rate of commercial acceptance bill portfolio of notes receivable is 0%. 3. Accounting estimates adopted by the company after change
The commercial acceptance bill portfolio of notes receivable refers to the experience of historical credit loss, combined with the current situation and the prediction of future economic conditions, prepares the comparison table between the aging of notes receivable and the expected credit loss rate throughout the duration, and calculates the expected credit loss. The specific situation of the expected credit loss rate is as follows:
Aging expected credit loss rate (%)
Within 6 months (including 6 months)-
7-12 months (including 12 months) 10.00
1-2 years (including 2 years, the same below) 15.00
2-3 years 20.00
More than 3 years 100.00
4. Change date
The change of accounting estimates will be implemented from January 1, 2021.
3、 Approval procedures for changes in accounting policies and accounting estimates
The changes in accounting policies and accounting estimates have been deliberated and approved at the 25th meeting of the 5th board of directors and the 21st Meeting of the 5th board of supervisors of the company, and need not be submitted to the general meeting of shareholders for deliberation.
4、 Impact of changes in accounting policies and accounting estimates on the company
1. According to the interpretation announcement of accounting standards for business enterprises issued by the Ministry of finance, the interpretation of applicable standards No. 14 and interpretation of Standards No. 15 comply with the provisions of relevant laws and regulations and the actual situation of the company, will not have a significant impact on the company’s financial status, operating results and cash flow, and will not damage the interests of the company and all shareholders.
2. The company originally included the transportation expenses and customs declaration expenses incurred in performing the customer contract into the sales expenses. According to the implementation Q & A issued by the Ministry of Finance in November 2021, they will be included into the operating cost from January 1, 2021. This accounting policy change adopts the future application method, which is expected to have an impact on the company’s “gross profit margin” and other financial indicators, and will not have a significant impact on the listed company’s operating income, net profit, net assets and other financial statement subjects and other important financial indicators.
3. This change in accounting estimates adjusts the expected credit loss rate divided into commercial acceptance bills, increases the provision for credit impairment losses, and more objectively and fairly reflects the company’s financial status and operating results. The statement items and amounts that are significantly affected in 2021 are as follows:
Amount affected by important statement items
order
Parent company of consolidated statement of assets as of December 31, 2021
Balance sheet items
Notes receivable -1466264088
Income statement items in 2021
Credit impairment loss -1466264088
5、 Explanation of the board of directors on the rationality of accounting policy change
The changes in accounting policies and accounting estimates comply with the provisions of relevant laws and regulations, the actual situation of the company and the accounting standards for business enterprises and relevant provisions. After the change, it can more objectively and fairly reflect the company’s financial situation and operating results, and provide investors with more reliable and accurate accounting information. This change will not lead to the change of the nature of the company’s profits and losses in relevant years, There is no case of using these matters to adjust the profits of each period to mislead investors, and there is no case of damaging the interests of the company and shareholders, especially the interests of minority shareholders. Therefore, the board of directors agreed to this accounting policy change.
6、 Opinions of independent directors
The independent directors believe that the accounting policy change is a reasonable change made by the company in accordance with the interpretation announcement of the accounting standards for business enterprises of the Ministry of Finance and the implementation of Q & A and other relevant provisions. The implementation of the new standards can more objectively and fairly reflect the company’s financial situation, operating results and actual situation, provide more reliable and accurate accounting information, comply with relevant regulations and the company’s actual situation, and comply with the provisions of relevant laws and regulations. This change will not have a significant impact on the financial statements and will not damage the interests of the company and shareholders, especially the interests of minority shareholders. This change in accounting estimates can more accurately reflect the company’s financial situation and operating results, help to improve the quality of the company’s financial information, comply with the relevant provisions of the accounting standards for business enterprises, do not harm the interests of the company and minority shareholders, and the review procedures comply with the provisions of the articles of association and relevant laws and regulations. The independent directors agree to the changes in accounting policies and accounting estimates.
7、 Opinions of the board of supervisors
The board of supervisors believes that the changes in accounting policies and accounting estimates are in line with the actual situation of the company and relevant provisions such as the accounting standards for business enterprises, and its decision-making procedures are in line with relevant laws and regulations and the articles of association. The changed accounting policies can more accurately reflect the company’s financial situation and operating results, and there is no damage to the interests of the company and shareholders. The board of supervisors agreed to the accounting policy changes and accounting estimates.
8、 Documents for future reference
2. Independent opinions of independent directors on relevant matters; 3. Resolution of the 21st Meeting of the 5th board of supervisors of the company. It is hereby announced!
Jiangsu Azure Corporation(002245) board of directors March 22, 2002
