Guangdong No.2 Hydropower Engineering Company Ltd(002060)
Special notes on changes in accounting policies and accounting estimates
Dahuhezi [2022] No. 004178
Dahua Certified Public Accountants (special general partnership)
DaHuaCertifiedPublicAccountants（SpecialGeneralPartnership）
Guangdong No.2 Hydropower Engineering Company Ltd(002060)
Special notes on changes in accounting policies and accounting estimates
(as of December 31, 2021)
Table of contents page 1. Special notes on changes in accounting policies and accounting estimates 1-2
Dahua Certified Public Accountants (special general partnership) 12th floor, building 7, No. 16 courtyard, Middle West Fourth Ring Road, Haidian District, Beijing [100039] Tel: 86 (10) 58350011 Fax: 86 (10) 58350006 www.dahua-cpa com. Special description of changes in accounting policies and accounting estimates dahuhezi [2022] No. 004178 Guangdong No.2 Hydropower Engineering Company Ltd(002060) all shareholders:
We are entrusted to issue this special instruction on the changes of accounting policies and accounting estimates of Guangdong No.2 Hydropower Engineering Company Ltd(002060) (hereinafter referred to as Guangdong No.2 Hydropower Engineering Company Ltd(002060) company) in accordance with the relevant regulations of Shenzhen Stock Exchange.
It is the responsibility of the board of directors of Guangdong No.2 Hydropower Engineering Company Ltd(002060) company to truthfully prepare and disclose the changes of accounting policies and accounting estimates, and ensure their authenticity, legitimacy and integrity. Our responsibility is to express opinions on whether the changes in accounting policies and accounting estimates comply with the relevant provisions of the accounting standards for business enterprises. We conducted the audit in accordance with the provisions of the auditing standards for Chinese certified public accountants, including evaluating the appropriateness of the accounting policies selected by the management and the rationality of the accounting estimates made.
Since we have not implemented complete audit procedures in accordance with the requirements of the auditing standards for Chinese certified public accountants, this special note should not be regarded as expressing audit opinions on the changes in accounting policies and accounting estimates, or the financial statements of Guangdong No.2 Hydropower Engineering Company Ltd(002060) company as a whole or any part thereof. If we obtain other audit evidence in the audit of financial statements, it may lead us to draw other conclusions.
The changes of accounting policies and accounting estimates of Guangdong No.2 Hydropower Engineering Company Ltd(002060) company are described as follows:
1、 Changes in accounting estimates
1. Reasons for changes in accounting estimates
Dahuhezi [2022] 004178 special instruction
According to the relevant provisions of accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments and accounting standards for Business Enterprises No. 14 – revenue, in order to more reasonably reflect the expected loss of accounts receivable, other accounts receivable and contract assets, provide investors with more reliable and accurate accounting information, and combine the current situation and the prediction of future economic conditions, the company plans to Change the expected loss rate of other receivables and contract assets.
2. Changes in accounting estimates
Accounts receivable, other receivables, changes in contract asset portfolio and changes in bad debt provision proportion.
3. Impact of changes in accounting estimates
According to the accounting standards for Business Enterprises No. 28 – accounting estimates, changes in accounting estimates and error correction, changes in accounting estimates are handled by the future application method. It is estimated that the impact of the change in accounting estimates on the net profit in 2021 is 141141 million yuan, which has no significant impact on the company’s operating results.
2、 Restrictions on users and purposes
This special instruction is only for the purpose of Guangdong No.2 Hydropower Engineering Company Ltd(002060) company meeting the regulatory requirements of the exchange, and shall not be used for other purposes. The consequences caused by improper use have nothing to do with the certified public accountants and accounting firms performing the business. Dahua Certified Public Accountants (special general partnership) Chinese certified public accountant:
Wang Jianhua
Beijing, China Certified Public Accountant:
Rongfan
March 29, 2002
