Stock Code: Dongjiang Environmental Company Limited(002672) stock abbreviation: Dongjiang Environmental Company Limited(002672) Announcement No.: 202217
Dongjiang Environmental Company Limited(002672)
Announcement on changes in accounting policies
The company and all members of its board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Dongjiang Environmental Company Limited(002672) (hereinafter referred to as "the company") deliberated and adopted the proposal on accounting policy change at the 18th meeting of the 7th board of directors and the 9th meeting of the 7th board of supervisors held on March 25, 2022. This accounting policy change does not need to be submitted to the general meeting of shareholders for deliberation. Relevant matters are specifically announced as follows:
1、 Overview of changes in accounting policies
(I) reasons for change
On February 2, 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 No. 14"), which clarified the accounting treatment of relevant social capital parties for government and social capital cooperation (PPP) project contracts. Interpretation No. 14 shall come into force from the date of promulgation, and the new relevant businesses from January 1, 2021 to the date of implementation shall also be adjusted according to the interpretation. Due to the revision of the above accounting standards, the company needs to adjust the accounting policies of relevant PPP projects accordingly.
The Ministry of Finance issued the interpretation of accounting standards for Business Enterprises No. 15 (hereinafter referred to as "Interpretation No. 15") on December 31, 2021, which defines 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 R & D, the judgment of loss contracts and the presentation of centralized fund management. 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.
(II) date of change
The implementation of the above-mentioned accounting standards shall begin on the commencement date of the above-mentioned accounting standards.
(III) accounting policies adopted before change
Before this change, the company adopted 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 Interpretation No. 14 and Interpretation No. 15 revised and issued by the Ministry of finance. Other unchanged parts will still be implemented in accordance with 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 provisions issued by the Ministry of finance.
2、 Impact of changes in accounting policies on the company
(I) according to Interpretation No. 14, the company will handle the above two new businesses from January 1, 2021 to the implementation date in accordance with the provisions of Interpretation No. 14. Retroactive adjustments have been made to relevant PPP project contracts that have been implemented before December 31, 2020 and have not been completed until the implementation date of Interpretation No. 14, and relevant businesses related to the benchmark interest rate reform before December 31, 2020. The relevant cumulative impact amount has not adjusted the data of the comparable period, but only the retained earnings and other relevant items in the financial statements on January 1, 2021. The difference between the original book value and the new book value of financial assets and financial liabilities is included in the retained earnings or other comprehensive income on January 1, 2021.
The impact of Interpretation No. 14 on the consolidated financial statements is as follows:
Statement items December 31, 2020 January 1, 2021
(before change) (after change)
Contract assets 977529574310048787271
Fixed assets 319953346835318890915710
Intangible assets 141887490081130759422667
Long term deferred expenses 32173218278641538199
Deferred income tax assets 53042099675128241280
Other non current assets 767861623916681642639
Other current liabilities 15480653
Other non current liabilities 509 Wangli Security & Surveillance Product Co.Ltd(605268)
Undistributed profit 293296185636295014907731
Minority shareholders' equity 8340760694583498066003
Explanation No. 14 has no impact on the financial statements of the parent company.
(II) Interpretation No. 15 regulates the presentation of centralized and unified management of the funds of the parent company and member units through internal settlement centers and financial companies, which shall be implemented from the date of promulgation. The company has adopted explanation No. 15 to prepare the financial statements of 2021, which has no impact on the consolidated and parent company's financial statements.
3、 Opinions of the board of directors
In the opinion of the board of directors; This accounting policy change of the company is a reasonable change made in accordance with the latest revised accounting standards for business enterprises of the Ministry of Finance and in combination with the actual situation of the company. It complies with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange. There is no damage to the interests of the company and shareholders and will not have a significant impact on the company's financial statements. We agree to this accounting policy change.
4、 Opinions of the board of supervisors
After review, the board of supervisors believes that: according to the relevant requirements of the Ministry of finance, the change of the company's accounting policies complies with relevant regulations and the actual situation of the company, its decision-making procedures comply with relevant laws, administrative regulations and the articles of association, and there is no damage to the interests of the company and minority shareholders. Therefore, we agree to the change of the company's accounting policy.
5、 Opinions of independent directors
After review, the independent directors believe that the company has made corresponding changes to the accounting policies in accordance with the requirements of the interpretation of accounting standards for Business Enterprises No. 14 and the interpretation of accounting standards for Business Enterprises No. 15 issued by the Ministry of finance. The changed accounting policies comply with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shenzhen Stock Exchange, will not have a significant impact on the company's financial statements, and will not damage the legitimate rights and interests of the company and all shareholders, Especially the interests of minority shareholders. This accounting policy change can more objectively and fairly reflect the company's financial situation and operating results, and provide investors with more reliable and accurate accounting information. The procedures of this accounting policy change comply with relevant laws and regulations and the articles of association, and the company agrees to this accounting policy change.
6、 Documents for future reference
1. Resolution of the 18th meeting of the 7th board of directors of the company.
2. Resolution of the 9th meeting of the 7th board of supervisors of the company.
3. Opinions of independent directors on relevant matters.
It is hereby announced.
Dongjiang Environmental Company Limited(002672) board of directors March 26, 2022
