Securities code: Huabao Flavours & Fragrances Co.Ltd(300741) securities abbreviation: Huabao Flavours & Fragrances Co.Ltd(300741) Announcement No.: 2022028 Huabao Flavours & Fragrances Co.Ltd(300741)
Announcement on changes in accounting policies
The company and all members of the board of directors except Mr. Lin Jiayu guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.
Special tips:
Huabao Flavours & Fragrances Co.Ltd(300741) (hereinafter referred to as “the company”) in accordance with the relevant provisions of the accounting department of the Ministry of finance of the people’s Republic of China (hereinafter referred to as “the Ministry of finance”) on the implementation of accounting standards for business enterprises, since January 1, 2021, the transportation costs incurred in the performance of customer sales contracts will be reclassified from “sales expenses” to “operating costs”, and the relevant subjects of 2020 financial statements will be retroactively adjusted. The change of accounting policy is not expected to have a significant impact on the financial report.
1、 Overview of changes in accounting policies
(I) reasons for change
On November 2, 2021, the accounting department of the Ministry of Finance issued a question and answer on the implementation of accounting standards for business enterprises, Specify: “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.
(II) date of change
The company will implement the changed accounting policies from January 1, 2021. For the accounting treatment of transportation costs incurred for the performance of sales contracts before the control of goods is transferred to customers, the amount in the same period of last year shall be retroactively adjusted.
(III) accounting policies adopted before this change
Before this accounting policy change, the company listed the relevant transportation costs in the “selling expenses” item.
(IV) accounting policies adopted after this change
After this accounting policy change, the company listed the transportation costs incurred in performing the customer sales contract in the “operating cost” item in accordance with the relevant implementation Q & A regulations of the accounting department of the Ministry of finance.
2、 Main contents of this accounting policy change and its impact on the company
(I) main contents of this accounting policy change
For the transportation costs incurred before the control of the goods is transferred to the customer and in order to perform the customer’s sales contract, the company reclassifies them from “sales expenses” to “operating costs”.
(II) main impact on the company
1. The transportation cost incurred for the performance of the sales contract is listed in the “operating cost” item, 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 financial statements and other important financial indicators.
2. The company will retroactively adjust the relevant subjects of the 2020 financial statements, and the specific adjustments are as follows:
Affected amount (yuan)
Affected
Content and reason of change 2020
Report item name
Parent company of consolidated statement
For the sales expenses incurred in the transfer of commodity control to customers
-Before 16446510 – 5583244 and occurred for the performance of customer sales contracts
For the transportation cost of, the self selling expenses shall be reset to the operating cost
164465105583244 are classified into operating costs.
It is hereby announced.
Board of directors of Huabao Flavours & Fragrances Co.Ltd(300741) Co., Ltd
March 26, 2022
