Securities code: Hunan Warrant Pharmaceutical Co.Ltd(688799) securities abbreviation: Hunan Warrant Pharmaceutical Co.Ltd(688799) Announcement No.: 2022011 Hunan Warrant Pharmaceutical Co.Ltd(688799)
Announcement on change of accounting policy
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 liabilities for the authenticity, accuracy and integrity of its contents according to law.
Important content tips:
Hunan Warrant Pharmaceutical Co.Ltd(688799) (hereinafter referred to as "the company") reclassified the transportation costs incurred in the performance of customer sales contracts from "sales expenses" to "operating costs" in accordance with the relevant provisions of the question and answer on the implementation of accounting standards for business enterprises issued by the Ministry of finance of the people's Republic of China (hereinafter referred to as "the Ministry of finance") on November 2, 2021, and retroactively adjusted the relevant subjects of 2020 financial statements. This accounting policy change will not have a significant impact on the company's financial position, operating results and cash flow.
1、 Overview of changes in accounting policies
(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 perform 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, and retroactively adjusts the relevant items in the 2020 financial statements.
(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 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) 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. The company will retroactively adjust the relevant subjects of the 2020 financial statements, and the specific adjustments are as follows:
Unit: yuan currency: RMB
Change content and reason affected report account affected amount (negative number indicates decrease) parent company of consolidated report
Before the control of the goods is transferred to the customer, and the transportation expenses incurred for the performance of the customer's sales contract are -398011180 -67836785
The company reclassified its sales expenses to operating costs of 398011180 and 67836785
3、 Concluding observations of independent directors, the board of supervisors and the audit committee
The independent directors, the board of supervisors and the audit committee of the company all agree with the change of the company's accounting policy and believe that the change of the accounting policy complies with the relevant provisions of the Ministry of finance, China Securities Regulatory Commission and Shanghai 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.
It is hereby announced.
Hunan Warrant Pharmaceutical Co.Ltd(688799) board of directors March 29, 2022
