Securities code: Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) stock abbreviation: Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) No.: Lin 2022045 bond Code: 143422 bond abbreviation: 18 Fuyao 01
Bond Code: 155067 bond abbreviation: 18 Fuyao 02
Bond Code: 175708 bond abbreviation: 21 Fuyao 01
Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd
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 individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips (the abbreviation is the same as the text):
This accounting policy change is made in accordance with the implementation question and answer issued by the Ministry of Finance in November 2021, and appropriate changes and adjustments are made to the accounting and presentation of relevant accounting subjects.
This change in accounting policies will not have a significant impact on the current and previous financial reports of the group.
1、 Overview of changes in accounting policies
1. Reason for change
In November 2021, the Ministry of finance of the people’s Republic of China (hereinafter referred to as the “Ministry of finance”) issued the question and answer on the implementation of accounting standards for business enterprises (hereinafter referred to as the “implementation question and answer”), which reclassified all the transportation costs incurred before the control of goods was transferred to customers and in order to perform the sales contract from “sales expenses” to “operating costs”.
2. Change date
Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd. (hereinafter referred to as “the company”) will prepare the financial statements (including the parent company’s statements and consolidated statements) for the year 2021 and beyond in accordance with the requirements of the question and answer on the implementation of accounting standards for business enterprises issued by the accounting department of the Ministry of Finance in November 2021.
3. Accounting policies adopted by the company before this change
Before the change of accounting policy, the company implemented the accounting standards for business enterprises – basic standards, various specific accounting standards, application guide of accounting standards for business enterprises, interpretation of accounting standards for business enterprises and other relevant provisions issued by the Ministry of finance.
4. Accounting policies adopted by the company after change
After this accounting policy change, the company will implement the above implementation question and answer issued by the Ministry of Finance in November 2021. In addition to the above changes in accounting policies, the remaining unchanged parts are still prepared in accordance with the accounting standards for business enterprises – Basic Standards issued by the Ministry of Finance and various specific accounting standards issued and revised thereafter, the application guide of accounting standards for business enterprises, the interpretation of accounting standards for business enterprises and other relevant provisions.
2、 Details and impact of this accounting policy change
The implementation Q & a pointed out that, “Under normal circumstances, the transportation activities before the control of the enterprise’s goods or services is transferred to the customer and in order to perform the customer’s contract do not constitute a single performance obligation. The relevant transportation costs shall be regarded as the contract performance costs, amortized on the same basis as the recognition of the revenue of goods or services, and included in the current profits and losses. The contract performance costs shall be carried forward and included in the ‘main business costs’ or’ other costs’ when the revenue of goods or services is recognized “Business cost” and listed in the “operating cost” item of the income statement.
According to the requirements of the implementation Q & A, the transportation costs incurred before the transfer of commodity control to the customer and in order to perform the sales contract should be reclassified from “sales expenses” to “operating costs”; The related cash outflow shall be reclassified from “other cash paid related to operating activities” to “cash paid for purchasing goods and receiving labor services”.
Accordingly, the relevant subjects of the company’s 2021 financial statements will be implemented according to this, and the relevant subjects of the 2020 financial statements will be retroactively adjusted.
From January 1, 2021, the company reclassified the transportation costs incurred in performing the customer sales contract from “sales expenses” to “operating costs”, as follows:
Unit: RMB
Affected amount
——Increase / decrease (indicated with “-“) contents and reasons of accounting policy changes. Affected statement accounts for 2021
The group and the company
(merger) (parent company)
For the transportation costs incurred before the control of the goods is transferred to the customer, the sales expenses are -31613208364 – and for the performance of the customer’s sales contract,
Reclassify all sales expenses to operating costs. Operating cost 31613208364-
Other paid
The related cash outflow will be paid from -31613208364 – cash related to operating activities
Other cash related to operating activities reclassified to
Purchasing goods and receiving services
Cash paid for purchasing goods and receiving labor services. 31613208364 – cash paid
The impact on relevant subjects of 2020 financial statements is as follows:
Unit: RMB
Affected amount
——Increase / decrease (indicated with “-“) contents and reasons of accounting policy changes affected statement subjects in 2020
The group and the company
(merger) (parent company)
For the transportation costs incurred before the control of the goods is transferred to the customer, the sales expenses are -30235085679 – and for the performance of the customer’s sales contract,
Reclassify all sales expenses to operating costs.
Operating cost 30235085679-
Other paid
The related cash outflow will be paid from -30235085679 – cash related to operating activities
Other cash related to operating activities reclassified to
Purchasing goods and receiving services
Cash paid for purchasing goods and receiving labor services. 30235085679 – cash paid
This accounting policy change will not have a significant impact on the current and previous financial reports of the group (i.e. the company and its holding subsidiaries / units).
3、 Relevant procedures of this accounting policy change
This accounting policy change is made in accordance with the implementation question and answer issued by the Ministry of finance, and does not need to be submitted to the board of directors and the general meeting of shareholders for approval.
It is hereby announced.
Board of directors of Shanghai Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) (Group) Co., Ltd. March 22, 2002
