Securities code: Guangdong Fuxin Technology Co.Ltd(688662) securities abbreviation: Guangdong Fuxin Technology Co.Ltd(688662) Announcement No.: 2022015 Guangdong Fuxin Technology Co.Ltd(688662)
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 legal responsibility for the authenticity, accuracy and completeness of its contents.
Important content tips:
Guangdong Fuxin Technology Co.Ltd(688662) (hereinafter referred to as “the company”) reclassified the transportation costs incurred in the performance of customer sales contracts from “sales expenses” to “operating costs” from January 1, 2021 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.
The company held the second meeting of the Fourth Board of directors and the second meeting of the Fourth Board of supervisors on March 25, 2022, deliberated and adopted the proposal on changes in accounting policies, and the independent directors expressed their consent. The proposal does not need to be submitted to the general meeting of shareholders for deliberation.
This change of accounting policy does not involve retroactive adjustment of the company’s previous years, and will not have a significant impact on the current period and the company’s total assets, total liabilities, net assets and net profit before the change of accounting policy.
1、 Overview
(I) reasons for changes in accounting policies
On November 2, 2021, the Ministry of Finance issued a question and answer on the implementation of accounting standards for business enterprises, It is clearly stipulated 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 fulfill the customer’s contract do not constitute a single performance obligation, and 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 profit and loss. The contract performance costs shall be listed in the ‘operating costs’ item of the income statement.”
According to the above requirements, the company reclassifies the transportation costs incurred in performing the customer sales contract from “sales expenses” to “operating costs” from January 1, 2021.
(II) accounting policies adopted before this change
Before the change of accounting policy, the company listed the transportation costs incurred in performing the customer sales contract in the “sales expenses” item.
(III) accounting policies adopted after this change
After this accounting policy change, according to the relevant implementation Q & A regulations of the Ministry of finance, the company decided to list the transportation costs incurred in performing the customer sales contract in the “operating cost” item from January 1, 2021.
2、 Main contents of this accounting policy change and its impact on the company
(I) main contents
For the transportation costs incurred before the control of 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) impact on the company
1. The transportation costs incurred for the performance of the sales contract are listed in the “operating costs” item, which will have an impact on the company’s sales expenses and operating costs, and will not have a significant impact on other important financial indicators.
2. This change of accounting policy does not involve retroactive adjustment of the company’s previous years, and will not have a significant impact on the current period and the company’s total assets, total liabilities, net assets and net profit before the change of accounting policy.
3、 Concluding comments of independent directors and board of supervisors
(I) independent directors
After deliberation, this accounting policy change is a reasonable change in accordance with the relevant provisions of the accounting department of the Ministry of Finance on the implementation of Q & A. the changed accounting policy can objectively and fairly reflect the company’s financial situation and operating results without damaging the interests of the company and shareholders. This change will not have a significant impact on the financial report. Therefore, we unanimously agree on the contents of the proposal on changes in accounting policies.
(II) board of supervisors
After deliberation, this accounting policy change is a reasonable change made by the company according to the requirements of relevant documents of the Ministry of finance. The implementation of accounting policy change can more objectively and fairly reflect the company’s financial status and operating results. The review procedure of this accounting policy change complies with the provisions of relevant laws and regulations and the articles of association, and there is no situation that damages the interests of the company and shareholders. Therefore, the board of supervisors agreed to the contents of the proposal on changes in accounting policies.
It is hereby announced.
Guangdong Fuxin Technology Co.Ltd(688662) board of directors March 28, 2022
